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Infratil Limited (“Infratil”) announces that its offer of unsecured, unsubordinated fixed rate Infrastructure Bonds to New Zealand retail and institutional investors is now open.
Infratil is offering up to $50 million of unsecured, unsubordinated fixed rate Infrastructure Bonds which are to mature on 15 March 2026 (“Bonds”), with the option to accept up to $50 million of oversubscriptions at Infratil’s discretion. The Bonds will form part of the same series as Infratil’s existing 3.35% per annum fixed rate bonds issued on 16 December 2019, 16 January 2020 and 14 February 2020 (“IFT300”). The key terms of the offer are contained in the Terms Sheet, a copy of which is attached.
The Issue Price for the Bonds will be $1.01694 per Bond for Bonds issued on 15 December 2020 and $1.01619 for Bonds issued on 15 March 2021, which has been determined using an Issue Yield of 3.00% p.a.. The coupon rate for the Bonds (payable on the Face Value of $1.00, not the Issue Price) is fixed at 3.35% p.a. for the term of the Bonds.
The offer is being 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 Bonds will be quoted on the NZX Debt Market.
Details on how to apply for the Bonds are set out in the Terms Sheet. The offer is now open, and is due to close on 10 March 2021. Infratil may elect to close the offer earlier.
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
Forsyth Barr Limited 0800 367 227 www.forsythbarr.co.nz
Hobson Wealth Partners Limited 0800 742 737
Jarden Securities Limited 0800 005 678 www.jarden.co.nz
Westpac Banking Corporation 0800 942 822
(ABN 33 007 457 141) (acting through its New Zealand branch)
Further information is available on www.infratil.com/for-investors/bonds/ or by contacting Aaron Queree (Group Treasurer, Infratil) on 04 473 3663.
Infratil Infrastructure Bond Offer Opens (PDF 138 KB)
The terms sheets applicable to Infratil’s bonds are available below.
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’s Annual Report contains a section which deals with Infratil’s Bonds, including a summary of the relevant year’s secondary market activity
With regards to the key coupon and maturity features, the Bonds fall into three distinct categories:
* The Bank Rate is the average of the interbank interest rate swap rates quoted that day for quarterly interest rate swaps of the relevant term.
29 Apr 2013
28 Jun 2013
15 Jun 2022
Face Value on Issue$93,696,000
Coupon (all payable quarterly)6.85% per annum
01 Oct 2015
15 Nov 2015
15 Sep 2023
Face Value on Issue$122,103,683
Coupon (all payable quarterly)5.25%
20 May 2016
10 Jun 2016
15 Jun 2021
Face Value on Issue$93,883,000
Coupon (all payable quarterly)4.90%
20 May 2016
10 Jun 2016
15 Jun 2024
Face Value on Issue$56,117,000
Coupon (all payable quarterly)5.50%
18 May 2017
12 Jun 2017
15 Dec 2022
Face Value on Issue$100,000,000
Coupon (all payable quarterly)5.65% per annum
18 May 2017
23 Jun 2017
15 Jun 2025
Face Value on Issue$43,413,442
Coupon (all payable quarterly)6.15%
01 Oct 2018
31 Oct 2018
15 Dec 2024
Face Value on Issue$100,000,000
Coupon (all payable quarterly)4.75%
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
20 Aug 2019
20 Sep 2019
15 Dec 2026
Face Value on Issue$156,279,000
Coupon (all payable quarterly)3.35%
22 Oct 2019
13 Feb 2020
15 Mar 2026
Face Value on Issue$36,975,800
Coupon (all payable quarterly)3.35%
20 Aug 2019
13 Nov 2019
15 Dec 2029
Face Value on Issue$123,186,000
Coupon (all payable quarterly)The coupon rate is reset every 15 November at 2.5% over the then one year Bank Base Rate
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
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.
IFT190 15 Jun 2022 Series Supplement
IFT220 15 Jun 2021 Series Supplement
IFT240 15 Dec 2022 Series Supplement
IFT210 15-Sep-2023 Series Supplement
IFT230 15 Jun 2024 Series Supplement
IFT260 15 Dec 2024 Series Supplement
IFT250 15 Jun 2025 Series Supplement
IFT300 15 Mar 2026 Series Supplement
IFT280 15 Dec 2026 Series Supplement
IFT270 15 Dec 2028 Series Supplement
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.