Greenstone Energy bond issue

Greenstone Energy bond issue

Greenstone Energy is pleased to announce an issue of bonds by Greenstone Energy Finance Limited.

Greenstone may not be a familiar name, but the proceeds of this bond issue will be funding activities and services the public of New Zealand are likely to know well. In April 2010, the New Zealand Superannuation Fund and Infratil acquired Shell’s New Zealand downstream oil and fuel operations and shareholding in The New Zealand Refining Company. This business imports, processes, distributes and sells approximately 2,500 million litres of crude oil and fuel each year, about 30% of New Zealand’s total consumption.

The offer is for up to NZ$100 million of bonds, with the ability to accept up to NZ$100 million of oversubscriptions. The interest rate on the bonds has been set at 7.35% per annum with interest payable semi annually. The bonds will be secured and will mature on 15 October 2016.

Money raised by the bond issue will be used to repay a part of the bank funding raised by Greenstone at the time of its purchase from Shell. The Bonds are unconditionally guaranteed by Aotea Energy Ltd, Greenstone Energy Holdings Ltd, Greenstone Energy Ltd, Harbour City Property Investments Ltd, Big Tree Stations Ltd, and Mini Fuels & Oils Ltd. New Zealand Superannuation Fund and Infratil do not guarantee the Bonds. The Greenstone Group's banks and Bondholders share the same security over the issuer's and guarantors' assets on an equal ranking basis. This security ranks behind Shell's security over petroleum products that Shell has supplied for which it has not been paid, and their proceeds, and statutorily preferred creditors.

ANZ National Bank Limited and First New Zealand Capital Securities Limited have been appointed Joint Lead Managers to the offer. Interested investors should contact the Joint Lead Managers or their financial advisor to request a copy of the Investment Statement.

• ANZ National Bank Limited: 0800 269 476, www.anz.co.nz/ipo

• First New Zealand Capital Securities Limited: 0800 005 678, www.firstnzcapital.co.nz

Applications for bonds can only be made using the application form included in the Investment Statement. No applications for bonds issued by Greenstone will be accepted or money received unless the subscriber has received the Investment Statement for the offer. The minimum application amount in respect of the bonds is $5,000.

ENDS

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