New Zealand's largest listed energy company, Contact Energy, announced today that it has raised $550 million through a five year unsecured, unsubordinated fixed rate bond offer, after receiving applications well in excess of the original $300 million sought.
Contact Energy Managing Director, David Baldwin, said, "We are pleased with the success of the bond issue. The strength of the demand for the offer is a good indication of ongoing support for Contact's business and its strategic initiatives."
Contact intends to use the capital raised to support its capital investment program including investment in geothermal development near Taupo, new gas-fired peaking capacity at Stratford, as well as the country's first underground natural gas storage facility near Stratford and for general operational purposes.
The Fixed Rate Bonds have a term of five years (maturing in May 2014) and offer investors an interest rate of 8.00 per cent per annum, payable quarterly. The Bonds have been assigned a credit rating of BBB by Standard & Poor's.
The offer opened on March 2 and closed on March 31, and the Bonds are expected to be quoted on the NZDX on April 6.
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