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Greenstone raises $147 million in bond issue

Fuseworks Media
Fuseworks Media

Wellington, Sept 20 NZPA - Greenstone Energy Finance Ltd has raised $147 million from its bond sale to pay down bank funding when it acquired assets from Shell in April.

The company accepted $47m worth of oversubscriptions. It was selling $100m of bonds but had the right to accept up to $100m worth of oversubscriptions.

The interest rate on the six-year bonds is 7.35 percent per annum with interest payable semi annually.

Greenstone Energy is jointly owned by infrastructure investor Infratil and the New Zealand Superannuation Fund.

Greenstone chief executive Mike Bennetts said he was pleased with very strong investor support for the issue and for Greenstone Energy.

"Our first five months have seen increasing numbers of customers actively choosing to support us and our challenge is to continue to earn that support and reward it," he said.

Joint lead managers ANZ and First NZ Capital said the bond sale result was a vindication of the strength of the New Zealand retail debt capital markets.

Separately, Infratil said in an update today that the 7.1 earthquake in Christchurch was a major natural disaster and it was a relief that none of Greenstone's staff were injured and that past planning and preparations have proven to be effective with no leaks and fuel supplies maintained.

Greenstone has 24 petrol stations in the earthquake area as well as truck stops, storage tanks with large commercial customers and terminal and distribution facilities at Port Lyttelton and Christchurch Airport. Other than a small amount of superficial damage to a number of service stations, all facilities retained their integrity and by the Monday after the earthquake all Greenstone's services in Canterbury were operational.

Most of Canterbury's fuel requirements are delivered by coastal tanker to Port Lyttelton where it is either held for truck delivery or piped through the Port Hills to storage and terminal facilities at Woolston. No material damage was sustained to this infrastructure although aftershocks caused disruptions.

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