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Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated Infrastructure Bonds

Infratil announces that the offer of the above Series of unsecured unsubordinated Infrastructure Bonds is now open.
Infratil is offering up to $200 million of Infrastructure Bonds in aggregate across both Series (with the option to accept up to $100 million of oversubscriptions in aggregate at Infratil's discretion).
The offer will be made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX.
The key terms of the offer are contained in the Terms Sheet.
The interest rate for the Infrastructure Bonds due 15 December 2026 ("2026 Bonds") will be fixed at 3.35% p.a. for the full term of the 2026 Bonds.
The interest rate for the Infrastructure Bonds due 15 December 2029 ("2029 Bonds") will be fixed for the first 15 months, and will then reset on 15 December 2020 and on 15 December of each subsequent year during the term of the 2029 Bonds (each, a "Rate Reset Date"), so that:

  • the interest rate on the 2029 Bonds for the period from the Issue Date to (and including)15 December 2020 will be 3.50% p.a.; and
  • for each subsequent year, the interest rate will be the sum of the One Year Swap Rate on the relevant Rate Reset Date plus a margin of 2.50% p.a. subject to a minimum interest rate of 2.50%p.a.

More information on the reset of the interest rate for the 2029 Bonds is set out in the Terms Sheet.
The offer is being made to all investors in New Zealand.
Details on how to apply for the Infrastructure Bonds are set out in the Terms Sheet. The offer is now open, and will close on 20 September 2019. Infratil may elect to close the offer earlier.

Please note that you MUST read the Term Sheet before deciding to invest.

Summary details of the offer (refer to the Terms Sheet for more detail):

ISSUER:                  Infratil Limited

INSTRUMENT:        Infrastructure Bonds are unsecured, unsubordinated debt securities. (Refer Terms Sheet for further information on ranking)


OFFER AMOUNT:  Up to $200 million in aggregate across both Series of Infrastructure Bonds (oversubscriptions of up to $100 million). There is no minimum size for each Series.

LISTING:  The Bonds are intended to be listed on the NZX Debt Market.

2026 Bonds

MATURITY DATE: 15 December 2026 (~7.2 Years)

INTEREST RATE: 3.35% per annum





Ticker code:          IFT280

ISIN:                       NZIFTD0280L4

2029 Bonds

MATURITY DATE: 15 December 2029 (~10.2 Years)

INTEREST RATE:  First year:  3.50% per annum.   Subsequent years:  Sum of 1 year swap rate on relevant reset date plus 2.50% per annum.  If the 1 year swap rate is less than 0%, then it will be deemed 0%.



Ticker code:      IFT290

ISIN:                   NZIFTD0290L3

ISSUE PRICE:                  $1.00 per Bond

INTEREST PAYMENTS:  15 March, 15 June, 15 September and 15 December of each year until and including the Maturity Date. Interest payable on the first Interest Payment Date will accrue at the Interest Rate from (and including) the date on which your subscription moneys have been banked to (but excluding) the first Interest Payment Date.  Interest will be paid to the original subscriber

MINIMUM APPLICATION: $5,000 and multiples of $1,000

INTEREST SUSPENSION AND DIVIDENED STOPPER: Infratil may suspend the payment of interest where an Interest Suspension Event exists. If suspended:

a)    interest will continue to accrue (without compounding) and will be paid by Infratil when the Interest Suspension Event ceases to exist; and

b) Infratil will not pay or make any distribution to shareholders or provide any financial assistance for the acquisition of shares in Infratil. (Refer Terms Sheet for further information on Interest Suspension Events)

RIGHT TO REDEEM EARLY: Infratil has the right to redeem all or some of the Infrastructure Bonds prior to the Maturity Date.  Bondholders have no right of early redemption except following an Early Redemption Event. (Refer Terms Sheet for further information)

COVENANT: Borrowed Money Indebtedness of the Issuer Group (Infratil and its 100% owned subsidiaries) will not exceed 50% of Tangible Assets of Infratil and its subsidiaries

JOINT LEAD MANAGERS: ANZ, BNZ, Deutsche Craigs, Forsyth Barr and Jarden,

Brokerage: Applicants are NOT required to pay brokerage for Infrastructure Bonds under this Offer.


OPENING DATE:                           Monday, 20 August 2019

CLOSING DATE:                           5.00pm, Friday 20 September 2019

ISSUE/ALLOMENT DATE:            20 September 2019 and 24 September 2019


If you wish to bid through us, you must read the Term Sheet and please advise your firm interest by no later than 5.00 P.M. Friday, 30th August 2019.

There is an application for this offer, but FIRM INTEREST must be emailed to Equity Investment Advisers. Reminder that NO brokerage is payable on this offer.

Please note that you MUST read the Term Sheet before deciding to invest.


Term Sheet


We strongly recommend you discuss with your adviser at Equity Investment Advisers Ltd to ensure you understand the terms and conditions.

If this offer is of interest to you please register your interest  below so that we can contact you

Expression of Interest click here

Registering your interest does not have any obligation to purchase these bonds. No money is sought at this point.

Please note the allocation may be scaled depending on availability.