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Bond Offer: Trustpower Ltd, 7 year unsecured unsubordinated fixed-rate

Trustpower Limited (“Trustpower” or the “Issuer”) announced today that it is offering up to NZ$100 million (with the ability to accept oversubscriptions of up to NZ$25 million at Trustpower’s discretion) of unsecured, unsubordinated fixed rate bonds (“Bonds”) to New Zealand institutional and retail investors (“Offer”). The indicative margin range for the Bonds is 1.75% to 1.85% per annum over the underlying swap rate, subject to a minimum interest rate of 3.35% per annum.

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

Summarised details of the bond offer are below:

Issuer:                         Trustpower Limited.

Description:                Unsecured, unsubordinated fixed rate bonds.

Maturity Date:             29 July 2026.

Issue Amount:            Up to $100 million of Bonds (with the ability to accept oversubscriptions of up to an additional $25 million at Trustpower’s discretion). The offer is not underwritten.

Interest Rate:               

The Interest Rate will be the sum of the Issue Margin and the Base Rate on the Rate Set Date, but in any case will be no less than the minimum Interest Rate of 3.35% per annum.
The Interest Rate will be announced by Trustpower via NZX on or shortly after the Rate Set Date.

The Issuer has announced the indicative interest margin range for the Bonds of 1.75% p.a. to 1.85% p.a. subject to a minimum nominal interest rate of 3.35% p.a. Based on the swap rate on 1 July 2019 of 1.62% p.a. for the period until 29 July 2026, the indicative issue margin implies an initial nominal interest rate for the Offer of 3.37% p.a. to 3.47% p.a.

Note this is an indication only. The actual initial nominal interest rate could be set higher, lower or within this indicative range subject to the minimum of 3.35% p.a. The actual nominal rate is not expected to be known until after the book build process on the Rate Set Date.

Issue Price:                  $1.00 per bond.

Listing:                          Trustpower will take any necessary steps to ensure that the Bonds are quoted immediately after issue,. Application has been made to NZX for permission to quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the distribution of this Terms Sheet have been duly complied with. However, NZX accepts no responsibility for any statement in this Terms Sheet. NZX is a licensed market operator and the NZX Debt Market is a licensed market under the FMCA.

NZX Ticker code TPW180 has been reserved for the Bonds.

Credit rating:                 -

Brokerage:                     No Brokerage.

Minimum Application:  $5,000 and in multiples of $1,000 thereafter.


Important Dates 

Opening Date:               01 July 2019

Closing Date:                19 July 2019

Rate Set Date:               05 July 2019

Issue & Allotment:        29 July 2019

Quotation                       30 July 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. Thursday, 4th July 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.