Mighty River Power Sets Bond Interest Rate

Mighty River Power Sets Bond Interest Rate

Mighty River Power Limited today set the interest rate for the initial five year period of its ten year $200 million fixed rate bond issue at 7.01% per annum.

Mighty River Power announced the unsecured, unsubordinated Bond issue last week with the offer opening tomorrow (15 April 2003) and closing on 7 May 2003.

The Bonds will bear interest at 7.01% per annum from the issue date of 9 May 2003 to 15 May 2008 on which date the interest rate shall be reset for the period until the Maturity Date of 15 May 2013. This reset will occur unless the Issuer exercises its right to repay all the Bonds in full on 15 May 2008. Application must be for a minimum aggregate principal amount of $5,000. Interest for the first interest period is payable to the original subscriber.

Chief Executive Dr Doug Heffernan said good support had been received for the issue during discussions with institutional investors and brokers last week.

"We are seeking to diversify our debt portfolio and improve the liquidity of our funding through this issue," says Dr Heffernan. "Funds from the bond issue will be used principally to repay short term bank debt, which will further extend the Company's debt maturity profile and diversify debt sources."

Deutsche Bank and National Bank of New Zealand are Joint Lead Managers for the issue. ABN AMRO Craigs and JB Were are Co-Managers to the issue.

Details of the offer are available to potential investors in the Investment Statement and the registered prospectus each dated 7 April 2003. Investors may obtain a copy of the Investment Statement by contacting their financial advisors or from the Company's website at www.mightyriverpower.co.nz. The Investment Statement can also be requested on 0800 22 00 10.