Transpower selling up to $300m bonds

Transpower's Benmore substation in the Waitaki Valley. Photo/ Supplied
Transpower's Benmore substation in the Waitaki Valley. Photo/ Supplied

Transpower New Zealand, the state-owned national grid operator, will sell up to $300 million of bonds for working capital and to help fund its network upgrade work.

The offer is for $200 million of unsecured, unsubordinated bonds with up to $100 million of over-subscriptions. The debt will be sold in two maturities, a December 3, 2015, issue with a floating interest rate and a September 6, 2019, fixed-rate issue, it said.

The 2019 bonds are expected to be quoted on the NZDX market starting on September 7. The debt will have an AA- credit rating with Standard & Poor's.

The interest rates will be announced following a bookbuild on August 31. Australia & New Zealand Banking Group and Bank of New Zealand are the joint lead managers for the sale.

Wellington-based Transpower last week reported to $84.8 million profit for the 12 months ended June 30, up from $78.5 million a year earlier. The grid company will $205 million final dividend.

- BusinessDesk

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