Downer mulls bond offer

The New Zealand unit of Australian engineering contractor Downer EDI is considering the sale of a New Zealand dollar three-year senior bond offer.

UBS has been appointed to structure the offer and a joint lead group is expected to be mandated soon, a market source familiar with the situation said.

The offer is expected to be up to $150 million and will mainly target New Zealand retail investors, the source said.

The statement did not give a timeframe or details of the size or the names of the banks involved. Downer EDI declined to give further details. The issuer would be Works Finance (NZ), a wholly owned subsidiary of Downer EDI.