SYDNEY, AUSTRALIA: Mercury NZ Limited (Mercury), a leading energy company in New Zealand, announced today its offering of up to $100 million of 5-year unsecured, unsubordinated fixed-rate green bonds (Green Bonds).
The offering, which opens today, will be available to institutional investors and New Zealand retail investors. Mercury also has the option to accept up to an additional $50 million in oversubscriptions at its discretion.
The issuance of the Green Bonds will be conducted under 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 conclude on June 9, 2023, with the Green Bonds anticipated to be issued on June 19, 2023.
The interest rate for the Green Bonds will be determined on the rate set date and will be equal to the underlying swap rate plus the issue margin. However, there is a minimum interest rate of 5.40% per annum. The indicative issue margin range for the Green Bonds is set between 1.05% and 1.15% per annum. The actual issue margin and interest rate, which may fall within, above, or below the indicative range, will be announced via NZX on June 9, 2023, following a bookbuild process.
S&P Global Ratings is expected to assign a BBB+ rating to the Green Bonds, reflecting their favorable standing in terms of creditworthiness.
The proceeds from the Green Bond offering will be specifically allocated to finance and refinance Eligible Projects, aligning with Mercury’s Green Financing Framework established in August 2020. This framework ensures that the funds raised will be used for environmentally sustainable initiatives.
It is important to note that the offer does not have a public pool, meaning all Green Bonds will be reserved exclusively for clients of the Joint Lead Managers, NZX participants, and other approved financial intermediaries.
Mercury’s green bond offering presents an opportunity for investors to support the company’s commitment to sustainability while providing funding for eligible projects that contribute to a greener future.