Infratil advises that the Board has approved the establishment of a $30 million infrastructure bond buyback capability. The capability has been established to allow the buyback of bonds if Infratil considers that the secondary corporate bond market has ceased to provide fair value. The capability has no fixed term.

The New Zealand corporate bond market has a long and highly credible record of allowing corporate issuers to borrow on competitive terms and allowing investors to achieve good risk-adjusted returns on their funds. As a major issuer of bonds into the New Zealand domestic market, Infratil's objective is to maintain the strong support of its investors and intermediaries.

There is no intention to acquire Infrastructure Bonds when the market is providing fair value and, accordingly, Infratil only intends to exercise this capability in exceptional circumstances.

Any decision to utilise the capability will have regard to Infratil's financial circumstances at the time and the factors affecting the listed debt market.

Tim Brown