Meridian Energy details plans to raise as much as $150m of bonds
The company said the bonds would mature in March 2023.
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Meridian Energy, New Zealand's largest hydro electricity generator and wind farm operator, plans to raise as much as $150 million of seven-year bonds, taking advantage of record low interest rates.
The Wellington-based company said the bonds would mature in March 2023 and will be offered at an indicative margin of 1.6-1.75% a year over the comparable benchmark. The seven-year swap rate, a benchmark for corporate borrowing, was recently at a record low 2.8125%. The utility plans to sell the bonds to institutional and New Zealand retail investors, with the interest rate to be set following a bookbuild process on March 7.
Meridian joins other New Zealand corporates selling bonds at a time of low rates, including the country's biggest dairy exporter, Fonterra Cooperative Group, the biggest telco company, Spark New Zealand, and the busiest airport, Auckland International Airport.
The energy company said the bonds would be quoted on the NZX debt market and have a long-term credit rating of BBB+ from Standard & Poor's.
Meridian had total borrowings of $1.2 billion at December 31. Its last retail bond issue raised $200 million in 2010 and it said it will use proceeds from its 2016 retail bond issue to refinance an April 2016 US private placement maturity. Its next capital market maturity is a March 2017 $75 million retail bond.
(BusinessDesk)
Tina Morrison
Tue, 01 Mar 2016
Tue, 01 Mar 2016
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Meridian Energy details plans to raise as much as $150m of bonds
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