New Zealand electricity generator, Contact Energy (ASX:CEN), has launched a $100 million retail Green Bond offer.
The proceeds from the issue of the Green Bonds will be used for the financing of renewable generation and other eligible assets. The indicative issue margin range is 1.45 to 1.55 per cent per annum.
The offer comes on the back of the company’s stellar half year results last week. Shares in Contact Energy (ASX:CEN) last traded at $6.03 on 13 Feb.
Previously this week, the company announced that it has opened an offer of up to $75 million of unsecured, unsubordinated fixed rate bonds to institutional investors and New Zealand retail investors, with the ability to accept up to a further $25 million in oversubscriptions.
The proceeds from the issue of the Bonds will be used for the refinancing of a $100m bond maturing on 13 April 2017 and for general corporate purposes.
The offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX.
The Bonds have a maturity date of 15 November 2022 and are expected to be quoted on the NZX Debt Market. They have an investment grade issue credit rating of BBB from Standard & Poor’s. Contact’s current corporate credit rating from Standard & Poor’s is BBB (stable).
Source Finance News Network