Transpower launches unlisted bond offer

04 March 2013

Transpower New Zealand Limited ("Transpower") today announced it is making an offer of up to NZ$150 million (with the ability to accept up to a further NZ$50 million in oversubscriptions) of unsecured, unsubordinated bonds ("Bonds").

Transpower is a State Owned Enterprise and 100% owned by the Crown. The Crown does not guarantee the Bonds.  Transpower plays two main roles central to the operation and development of New Zealand’s electricity power system.  It is the owner and the operator of New Zealand’s only national high voltage electricity transmission system (National Grid) and the provider of co-ordination and security functions for the power system.

Net proceeds from the issue of Bonds are intended to be used for general corporate purposes, including the capital expenditure requirements of the Transpower Group.

The Bonds have been documented pursuant to a registered simplified disclosure prospectus ("Prospectus") and the relevant pricing supplements for the Bonds ("Pricing Supplements").

The full details of the offer are contained in these documents.

The Bonds are being offered with maturities of 15 March 2023 and 15 March 2028. The Bonds will not be listed on any exchange.

Transpower expects the Bonds will be assigned a credit rating of AA- by Standard & Poor’s and A1 by Moody's.

An announcement of the indicative issue margin range will be made on or before the opening date. The opening date is expected to be 12 March 2013.

An announcement of the issue margins will be made following the bookbuild process, expected to be on 13 March 2013.  The interest rate on the Bonds is expected to be set on 13 March 2013.

Investors interested in the offer should contact the Lead Manager, BNZ, on 0800284 017, or their usual financial adviser, to request a free copy of the Prospectus and the relevant Pricing Supplement*.
* Applications for Bonds can only be made using the application form included in the Prospectus. No applications for Bonds will be accepted or money received unless the subscriber has received a copy of the Prospectus and the relevant Pricing Supplement.  The minimum application amount is for Bonds with a principal amount of at least NZ$5,000 and in multiples of NZ$1,000 thereafter.