Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Infratil, flush with funds, won't offer reinvestment option

Infratil, flush with funds, won't offer reinvestment option for Nov. 2017 bond holders

By Jonathan Underhill

Oct. 17 (BusinessDesk) - Infratil, which is one of the biggest issuers of NZDX-listed debt securities, says it won't offer holders of its November 2017 bonds an option to reinvest because it has ample funds and untapped bank facilities.

The Wellington-based infrastructure and utility investor has 11 exchange-traded bonds with a collective value of $1.08 billion, of which seven mature over the next eight years and one that is a perpetual bond. In the past, Infratil has typically offered holders of maturing bonds the option to roll over some or all of the maturing debt into a new bond issue.

"Infratil often seeks to provide bondholders with a reinvestment option," Infratil treasurer Fiona Cameron says in a letter to holders of the 2017 bonds. "However, at present, we have a substantial level of funds on deposit with our banks and, accordingly, the Infratil board has decided not to make a further bond issue at this stage."

A spokesman wasn't immediately available to comment further. In a market update in August, Infratil said it had net debt of $668 million at July 31, down from $913 million at March 31. The net figure included bank deposits of $465 million. It also had unused bank facilities of about $250 million.

The company said at the time that it had "considerable capital resources" to support initiatives such as separately listed Tilt Renewables construction of a wind farm in Victoria, developments at its Longroad Energy investment in the US, which develops solar and wind farms, a hotel at Wellington International Airport, and the fifth development for Canberra Data Centres.

Its funds have been boosted this year by the $238 million proceeds from selling 20 percent of Metlifecare and the sale of $143 million of bonds. It also repaid $66 million of debt.

Cameron said Infratil's surplus liquidity will be used in the near-to-medium term on long-term investments. "This may result in the Infratil board deciding to make a further issue of infrastructure bonds," she said.

The NZX's debt market, with a market capitalisation of about $28 billion, is only just over a fifth of the size of its equity market although it has been growing at a faster pace. In September, the total number of listed debt securities rose by 9.4 percent to 116 while equity securities fell 4.1 percent to 163. New debt listings amounted to $580 million in September and $2.67 billion year-to-date, while there were no new share sales or compliance listings of equities for a total this year of $480 million.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Ongoing Monetary Tightening
The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 3 percent from 2.5 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions... More>>



Statistics: Weekly Earnings Rise As More In Full-time Employment

Median weekly earnings from wages and salaries rose by 8.8 percent to $1,189 in the year to the June 2022 quarter, Stats NZ said today... More>>



Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>


Electricity Authority: Imposes Interim Restrictions On Very Large Electricity Contracts

Consumers of electricity will be protected from potentially paying more than they should due to the impact of very large electricity contracts on wholesale prices, under urgent changes announced today by the Electricity Authority... More>>


Westpac: Economic Overview, August 2022 – Pushing Through

The New Zealand economy faces some lean growth in the year ahead as households’ budgets are squeezed, according to Westpac’s latest Economic Overview... More>>


Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>