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Home › For Investors › Bonds
Infratil Bond Offer
Infratil Infrastructure Bonds 3.35% p.a. due 15 March 2026
22 October 2019
Infratil announces that the offer of the above Series of unsecured unsubordinated Infrastructure Bonds is now open.
Infratil is offering up to $50 million of Infrastructure Bonds in aggregate across both the General and Exchange Offers (as described below), with the option to accept up to $75 million of oversubscriptions in aggregate at Infratil's discretion.
The offer will be made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX.
The key terms of the offer are contained in the Terms Sheet, a copy of which is attached.
The interest rate for the Infrastructure Bonds due 15 March 2026 ("2026 Bonds") will be fixed at 3.35% p.a. for the full term of the 2026 Bonds. Infratil also has an existing bond offer open in the market being Infratil Infrastructure Bonds due 15 December 2029 ("2029 Bonds").
The offer comprises a General Offer to all investors in New Zealand and an Exchange Offer under which holders of the IFT200 bonds that mature on 15 November 2019 have the opportunity (subject to availability) to exchange some or all of their maturing bonds for 2026 Bonds. Holders of the IFT200 bonds also have the option (subject to availability) of exchanging some or all of their maturing bonds for 2029 Bonds, as described in the separate offer documents for the 2029 Bonds.
Details on how to apply for the Infrastructure Bonds are set out in the Terms Sheet. The offer is now open, with the Exchange Offer closing on 8 November 2019 and the General Offer closing on 13 February 2020. In both instances Infratil may elect to close the offer earlier.
Infratil also expects to provide holders of the IFT090 bonds that mature on 15 February 2020 ("2020 Bonds") with the opportunity (subject to availability) to exchange some or all of their maturing bonds for 2026 Bonds. If that option is made available, Infratil will send further information on how to apply directly to holders of the 2020 Bonds.
Interested investors, should contact their broker or one of the managers of the offer (outlined below) for more details.
ANZ Bank New Zealand Limited 0800 269 476
Bank of New Zealand 0800 284 017
Jarden Securities Limited 0800 005 678 www.jarden.co.nz
Forsyth Barr Limited 0800 367 227 www.forsythbarr.co.nz
Application has been made to NZX for permission to quote the Infrastructure Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. NZX is a licensed market operator, and the NZX Debt Market is a licensed market, each regulated under the Financial Markets Conduct Act 2013.
Exchange Offer Application Form
22 October 2019
The offer comprises a General Offer to all investors in New Zealand and an Exchange Offer under which holders of the IFT200 bonds that mature on 15 November 2019 have the opporunity (subject to availability) to exchange some or all of their maturing bonds for 2026 Bonds. Holders of the IFT200 bonds also have the option (subject to availability) of exchanging some or all of their maturing bonds for 2029 Bonds, as described in the separate offer documents for the 2029 Bonds. Details on how to apply for the Infrastructure Bonds are set out in the Terms Sheet.
The offer is now open, with the Exchange Offer closing on 8 November 2019 and the General Offer closing on 13 February 2020. In both instances Infratil may elect to close the offer earlier.
Infratil Infrastructure Bonds due 15 December 2029
Details on how to apply for 2029 Bonds are set out in the Revised Terms Sheet.
On 20 September 2019, Infratil announced that it had extended the closing date for the offer of its Infrastructure Bonds due 15 December 2029 ("2029 Bonds") to 5:00pm on 13 November 2019.The original Terms Sheet has been revised to reflect the extended closing date for the 2029 Bonds and to remove references to the offer of Infrastructure Bonds due 15 December 2026, which has now closed.
Infratil Infrastructure Bonds
Infratil has eleven Infrastructure Bonds on issue. The terms sheets of each are available below. Key features of the bonds are:
- All Infratil Infrastructure Bonds are listed on the NZDX. Most trade regularly, but because many investors hold to maturity at times trading can be thin and prices volatile, even though several banks and brokers trade the Bonds.
- Infratil has eleven Infrastructure Bonds on issue. $904,459,105 of these have dated maturities ranging from November 2019 to December 2028. $231,900,000 of the Bonds are perpetual (ie. have no maturity date). An explanation of the Perpetual Bonds is set out below.
- All of the Bonds have terms that allows Infratil the right (in most circumstances) to redeem early, although on terms intended to ensure that bondholders are not penalised. With two of the Bonds, Infratil has the right to meet its repayment obligations by issuing shares or by paying cash (rather than only by paying cash). These are the Bonds that mature February 2020 and the Perpetual Bonds. Again, this right is structured with the aim of ensuring that the bondholders would not be disadvantaged relative to receiving cash.
- All the Bonds pay quarterly coupons. Two of the Bonds have coupons that are re-set. The Perpetual Bonds have their coupon re-set every 15th November to yield 1.5% over the then one year bank rate (known as the Swap Rate). The coupon now is 3.55%pa. (and will be re-set 15 November 2019). The Bonds which mature in December 2028 will have their coupon re-set only once, being on 15 December 2023 to yield 2.5% over the then five year Swap Rate.
IFT090 15 Feb 2020
20 Dec 2005
02 Jun 2006
15 Feb 2020
Face Value on Issue$80,497,600
Coupon (all payable quarterly)8.5% per annum
IFT200 15 Nov 2019
23 Dec 2013
28 Feb 2014
15 Nov 2019
Face Value on Issue$68,500,000
Coupon (all payable quarterly)6.75% per annum
IFT190 15 Jun 2022
29 Apr 2013
28 Jun 2013
15 Jun 2022
Face Value on Issue$93,696,000
Coupon (all payable quarterly)6.85% per annum
IFT210 15 Sep 2023
01 Oct 2015
15 Nov 2015
15 Sep 2023
Face Value on Issue$122,103,683
Coupon (all payable quarterly)5.25%
IFT220 15 Jun 2021
20 May 2016
10 Jun 2016
15 Jun 2021
Face Value on Issue$93,883,000
Coupon (all payable quarterly)4.90%
IFT230 15 Jun 2024
20 May 2016
10 Jun 2016
15 Jun 2024
Face Value on Issue$56,117,000
Coupon (all payable quarterly)5.50%
IFT240 15 Dec 2022
18 May 2017
12 Jun 2017
15 Dec 2022
Face Value on Issue$100,000,000
Coupon (all payable quarterly)5.65% per annum
IFT250 15 Jun 2025
18 May 2017
23 Jun 2017
15 Jun 2025
Face Value on Issue$43,413,442
Coupon (all payable quarterly)6.15%
IFT260 15 Dec 2024
01 Oct 2018
31 Oct 2018
15 Dec 2024
Face Value on Issue$100,000,000
Coupon (all payable quarterly)4.75%
IFT270 15 Dec 2028
01 Oct 2018
31 Oct 2018
15 Dec 2028
Face Value on Issue$146,249,000
Coupon (all payable quarterly)4.85% rate reset after 5 years
IFT280 15 Dec 2026
20 Aug 2019
20 Sep 2019
15 Dec 2026
Face Value on Issue Coupon (all payable quarterly)3.50%
IFTHC 15 December 2029
20 Aug 2019
15 Dec 2029
Face Value on Issue Coupon (all payable quarterly)3.50% until 15 Dec 2020 rate reset on 15 December 2020 and annually thereafter
IFTHA Perpetual
17 Nov 2006
30 Apr 2007
$231,900,000
Coupon (all payable quarterly)The coupon rate is reset every 15 November at 1.5% over the then one year Bank Base Rate
Infrastructure Bonds Trust Deed
Infratil Infrastructure Bonds Amendment and Restatement Trust Deed effective from 11 September 2015
Infratil Trust Deed Amendments
Infratil Infrastructure Bonds Trust Deed 11 November 1999
Infratil Infrastructure Bonds Trust Deed Amendment dated 14 August 2003
Infratil Infrastructure Bonds Second Amending Trust Deed 15 November 2006
Infratil Infrastructure Bonds Third Amending Trust Deed 27 September 2012
Infratil Infrastructure Bonds Trust Deed 17 May 2017
The Trustee is Trustees Executors Limited, Level 5, 10 Customhouse Quay, Wellington.
Telephone : 04 495 0999
The terms of Infratil’s Bonds are set out in their individual prospectus and trust deeds (and summarised in the relevant Investment Statement). Each six months Infratil provides the Trustee with a certificate signed by directors confirming its position relative to the Bond covenants and with regards to general compliance with Bond terms. Infratil has always recorded conformity. Bondholders are welcome to contact the Trustee to confirm Infratil’s compliance.
Perpetual Infratil Infrastructure Bonds PiiB
Outlined below is a detailed explanation of the PiiB. These are an unusual debt instrument as the coupon rate is reset each year and there is no maturity date. The explanation covers the history of the PiiBs and factors investors should consider when buying or selling them.
