Contact Energy raises NZ$550 in successful bond issue

Contact Energy raises NZ$550 in successful bond issue
Contact Energy announced that it had completed its retail bond issue, raising NZ$550 million. Contact had initially sought NZ$300 million but opened the issue up to accept NZ$250 million in oversubscriptions. See our corporate bond rush page here. "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's Managing Director David Baldwin said. Contact said in a statement that it 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 five year, BBB rated bonds are offering a rate of 8% p/a.

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