Investors jump at Powerco bonds

The company reports that 913 individual investors jumped at the chance to buy up the first $5 million of a planned $100 million Capital Bonds issue.

Powerco needs the money to pay for the purchase the Porirua and Hutt Valley gas distribution networks from AGL last July.

Applications on the first $5 million closed on May 17 with total subscriptions exceeding $12.3 million.

Chairman Barry Upson says the strong interest is a positive reflection on Powerco's reported profit of just under $33 million for the year to the end of March.

The North Island energy distributor reports all investors who applied to the Priority Pool were able to be satisfied at least to the level of the minimum application amount of $5,000.

"All existing Powerco investors who applied for $9,000 or less will be allocated $5,000 from the Priority Pool, and all those who applied for more than $9,000 will be allocated $6,000 from the Priority Pool," it says.

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