- Genesis Energy (GNE) offers institutional and New Zealand retail investors up to $NZ75 million ($A69.8 million) of six-year fixed-rate unsecured, unsubordinated green bonds
- The company says it can accept oversubscriptions for the offer of up to an additional $NZ50 million ($A46.5 million) at its discretion
- The minimum interest rate for the green bonds will be four per cent per annum and the actual interest rate will be announced via the NZX on Friday, March 4
- GNE shares up 1.17 per cent to $2.60
Genesis Energy (GNE) has offered institutional and New Zealand retail investors up to $NZ75 million ($A69.8 million) of six-year, fixed-rate unsecured, unsubordinated green bonds.
The company said it has the option to accept oversubscriptions for the offer of up to an additional $NZ50 million ($A46.5 million) at its discretion.
The offer, which will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities, opened today and was slated to close this Friday, March 4.
Genesis said the interest rate for the green bonds will comprise the base rate plus margin rate, subject to a minimum interest rate of four per cent per annum.
The company said the indicative margin range was 1.05 per cent to 1.20 per cent per annum and the first of the twice-a-year interest payments on the bonds was due on Wednesday, September 14, 2022.
An announcement of the actual margin and interest rate was expected on Friday following a bookbuild process.
The green bonds, set to mature in six years on March 14, 2028, have been assigned a BBB+ credit rating by S&P Global Ratings.
Genesis is New Zealand’s largest energy retailer and generates electricity from thermal and renewable generation assets located across New Zealand.
It also owns a 46 per cent interest in the Kupe joint venture, which owns the Kupe oil and gas field offshore Taranaki.
As of February 28, Genesis held $NZ575 million ($A535 million) in bonds and bank debt facilities under its sustainable finance framework.
GNE shares closed the day’s trading session 1.17 per cent higher at $2.60.