Investors

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 15^th 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.

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.

Perpetual Infratil Infrastructure Bonds March 2018 (PDF)