Contact Energy considering green Capital Bond offer for up to NZ$225 million

• Evaluating bond offer up to NZ$225 million
• Proceeds to support refinancing of renewable generation
• Capital bonds expected to be assigned BB+a credit rating
• Forsyth Barr Capital Markets appointed as arranger

Leading New Zealand utility Contact Energy (ASX: CEN) is considering making an offer of up to NZ$225 million.

The offer of unsecured, subordinated, redeemable, cumulative, interest -bearing green capital bonds will be made to NZ retail and institutional investors.

The proceeds of the offer will be used by Contact for the financing and refinancing of renewable generation and other eligible green assets.

It is expected that full details of the offer will be released later this week with the offer expected to open during the week beginning 2 November 2026.

The capital bonds are expected to be assigned a credit rating of BB+ by S&P Global Ratings (S&P), which is two notches below S&P’s issuer credit rating for Contact reflecting their subordination and the potential for interest payments to be deferred.

If the offer is made and the bookbuild is successful, Contact intends to redeem its NZ$225 million green capital bonds quoted on the NZX Debt Market under the ticker code CEN060 (CEN060 Bonds) on 19 November 2026, being the first reset date for the CEN060 Bonds.

It is expected that trading in all CEN060 Bonds will be suspended from market close on 5 November 2026. Contact will write to all holders of the CEN060 Bonds directly to notify them of the potential redemption and the trading suspension.

Contact has appointed Forsyth Barr Capital Markets as arranger and joint lead manager and Bank of New Zealand and Craigs Investment Partners as joint lead managers in relation to the proposed offer.

No money is currently being sought and no capital bonds can be applied for or acquired until the offer opens.

Application will be made to NZX for any capital bonds to be quoted on the NZX Debt Market on completion of the offer.

CEN was steady at $7.04 with a Mkt cap of $7.537B prior to markets opening.

Join the discussion: See what HotCopper users are saying about Contact Energy and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.