Infratil defers bonds sale to amend prospectus for Greens/Labour plan
The opening date for the sale of the bonds, which carry a coupon of 6.85%, will be deferred until the changes are made.
Infratil, the Wellington-based investment group managed by Morrison & Co, says its sale of up to $100 million of June 2022 bonds will not open as planned today because it needs to amend the prospectus for the Greens/Labour power plan.
"Although the prospectus discloses changes in the regulatory environment as one of the principal risks of an investment in infrastructure bonds, the amendment will include additional information about the Greens/Labour proposals so that prospective bond investors can consider that additional information in their decision making," Infratil's Tim Brown says in a statement.
The opening date for the sale of the bonds, which carry a coupon of 6.85 percent, will be deferred until the changes are made.
The decision to delay the sale follows tweaks to Mighty River Power's prospectus this week to take into account the opposition proposal to establish a central buying agency and market regulator, NZ Power, that would tender for new generation capacity as part of a strategy to drive down power prices.
The proposal is also likely to have a bearing on other companies that tap debt markets including Contact Energy, whose shares suffered when the plan was first announced.
(BusinessDesk)
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Infratil defers bonds sale to amend prospectus for Greens/Labour plan
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