​Spark mulls over $150 million seven-year retail bond offer

Telco looks to take advantage of low interest rates to raise debt funding.

Simon Moutter - Managing Director, Spark New Zealand

Simon Moutter - Managing Director, Spark New Zealand

Spark New Zealand is wondering about raising up to $150 million through a retail bond offer, in a bid to take advantage of low interest rates to raise debt funding.

As reported to the NZX, the telco’s Spark Finance division is mulling over the idea of making an offer of up to $100 million unsecured, unsubordinated fixed rate bonds to institutional and New Zealand retail investors.

In addition, the telco will allow over-subscriptions of up to $50 million.

As the company in the Spark New Zealand group that carries out the borrowing activities for the group, Spark Finance says the bonds are expected to have a term of approximately seven years and will mature in March 2023.

In a statement, the company says it is expected that full details of the offer will be released in the week beginning 30 November 2015, when the offer is expected to open.

SFL has appointed ANZ Bank New Zealand Limited and Commonwealth Bank of Australia as Joint Lead Managers and Deutsche Craigs Limited as Co-manager in relation to the Bond offer.

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