Vector to raise $150m through bond offer

Vector, New Zealand’s biggest gas and electricity distributor, plans to raise $150 million selling bonds to bolster its finances.

The October 15, 2014, bonds will pay a minimum interest rate of 7.5%, Vector said in a statement. The bonds are rated BBB+ by Standard & Poor’s.    

The utility is seeking to have the debt securities listed on the NZDX market.    

Companies are tapping investor demand for higher yields amid dwindling returns from bank and term deposits. The sale’s leas managers are Goldman Sachs JBWere, ABN AMRO Craigs, ANZ Bank and BNZ Capital.    

Shares of Vector fell 1.4% to $2.13 today and have gained 7.5% this year. 

Businesswire.co.nz

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