Contact launches retail Green Bond offer

Tuesday 27th September 2022

Contact Energy Limited (Contact) confirmed today that it is offering up to $200 million (with the ability to accept up to an additional $50 million of oversubscriptions at Contact’s discretion) of 5.5-year fixed rate, unsecured, unsubordinated green bonds (Green Bonds) to institutional investors and New Zealand retail investors.

The offer opens today and 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. The offer is expected to close at 11:00am on Friday, 30 September 2022 and the Green Bonds are expected to be quoted on the NZX Debt Market.

Contact has an Issuer Credit Rating from S&P Global Ratings of BBB (stable outlook). The Green Bonds are to be assigned an Issue Credit Rating of BBB.

The proceeds of the offer will be used by Contact for the financing and refinancing of renewable generation and other eligible green assets in accordance with the terms of Contact’s Green Borrowing Programme Framework.

The interest rate for the Green Bonds will be set on the rate set date as being equal to the base rate plus the issue margin, subject to a minimum interest rate of 5.45% per annum. The indicative issue margin range for the Green Bonds is 1.30% to 1.45% per annum. An announcement of the actual issue margin (which may be above or below the indicative issue margin range) and interest rate is expected to be made via NZX on Friday, 30 September 2022 following a bookbuild process.

There is no public pool for the offer, with all of the Green Bonds being reserved for clients of the Joint Lead Managers, institutional investors and other primary market participants invited to participate in the bookbuild.

Details of the offer are contained in the indicative terms sheet. The indicative terms sheet is available at www.contact.co.nz/bondoffer or by contacting one of the Joint Lead Managers (listed below) or your usual financial adviser.

Copies of the indicative terms sheet and investor presentation have also been provided to NZX with this announcement.

ANZ Bank New Zealand

0800 269 476

Bank of New Zealand

0800 284 017

Craigs Investment Partners Limited

0800 226 263

Forsyth Barr Limited

0800 367 227

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