Article image
Article image
Article image
Article image
Article image
Article image

$2.5B bond issue

. The Electricity Corporation yesterday signed the documents for its planned $2.5 billion domestic bond programme. The programme will constitute the biggest issue of publicly listed corporate bonds in New Zealand. Electricity Corporation chairman, Mr John Fernyhough, said it was well placed to launch the programme because of its strong credits worthiness as a borrower. The $2.5 billion bonds are to be issued over the next three years, with the first $2OO million tender on September 8, 1988, for settlement by September 15, 1988. The bonds are closely modelled on 5-year Government stock with 10 per cent coupon and maturity in November, 1993. Lead managers for the programme are the Bank of New

Zealand and the National Bank of New Zealand. They will also underwrite the initial tender. The Reserve Bank of New Zealand will be the Corporation’s issuing and paying agent, and five financial institutions, the Bank of New Zealand, National Bank of New Zealand, Citibank, N.A., Fay, Richwhite and Company, and Westpac Banking Corporation, have been appointed dealers. „ The New Zealand Guardian Trust Company will act as trustee for the bondholders. The new domestic bond programme is the second securitised borrowing programme carried out by the Corporation this financial year. It follows the. launching in May of a $3OO million promissory note facility.

This article text was automatically generated and may include errors. View the full page to see article in its original form.
Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19880824.2.165.1

Bibliographic details

Press, 24 August 1988, Page 37

Word Count
217

$2.5B bond issue Press, 24 August 1988, Page 37

$2.5B bond issue Press, 24 August 1988, Page 37