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Mighty River Power successfully launches NZ$25 mln and NZ$75 mln local wholesale bond issues; BNZ the sole arranger

Posted in Bonds

Mighty River Power, which might soon be partially sold to the public, today announced the successful pricing of a new wholesale bond issue in the domestic market.

The issue consists of $75 million of six year bonds and $25 million of 10 year bonds with fixed coupons of 5.029% and 5.793% respectively. The issue date of the bonds is March 6 this year.

Mighty River Power’s Chief Financial Officer, William Meek, said these bonds were part of a refinancing programme and the proceeds would be used for general corporate purposes.

"The issue was taken up by a broad range of local institutional investors and we’re delighted with the continued support for Mighty River Power from the domestic debt market. The success of the bond issue will lengthen our debt maturity profile to more than 5 years following the Company’s repayment of its Retail Bond in May 2013,” said Mr Meek.

BNZ was the sole lead arranger for the bond issue.

The Government has earmarked MRP as the first candidate for the "mixed ownership model", with plans for up to 49% of it to be publicly floated as soon as possible. However, crucial will be the outcome of a Supreme Court ruling on a Maori water rights claim. This ruling is due in the next day or two.

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