Greenstone Energy, which took over the Shell retail and distribution business in April, has confirmed a $100 million bond issue to repay bank debt.

Greenstone, which also owns the former Shell stake in NZ Refining, is owned by the New Zealand Superannuation Fund and Infratil.

It said yesterday that with the $100 million bond issue, it had the ability to accept up to $100 million of oversubscriptions.

The interest rate on the bonds was set at 7.35 per cent a year, with the money raised being used to repay part of the bank funding raised by Greenstone at the time of its purchase from Shell, Greenstone said.