Genesis to offer up to $225 million in bonds

State-owned electricity generator Genesis Energy is offering a public issue of up to $225 million in corporate bonds. The offer, of $150 million plus up to $75 million in oversubscriptions, is expected to open on December 3 and close on December 19.

The bonds will be used for general corporate purposes – in particular the repayment of debt which comes up for refinancing soon., rather than financing new projects by the company.

Genesis said in its statement that although it was owned by the government its bonds were not guaranteed by the Crown. Standard & Poors has assigned an investment grade rating for the company of BBB+.

(This is broadly in line with the previous government’s goal of a BBB benchmark credit rating for SOEs; ratings agencies are understood to “bump up” SOEs by about one grade to reflect the government ownership.)

The minimum coupon rate for each tranche of bonds – maturing in March 2014 and 2016 respectively - will be set around December 3.

Details of the issue are on Genesis’ website 


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