Refining New Zealand Ltd (NZX: NZR) said that further to its announced offer of up to $75 million of unsecured, subordinated notes it was now providing the indicative issue margin and minimum interest rate to be used.
This rate would apply to the subordinated notes until the first election date on March 1, 2024.
The initial interest rate will be set as the sum of the swap rate (from the issue date of March 1, 2024) plus the issue margin, subject to a minimum interest rate of 5.1% per annum. The indicative issue margin has been set at 2.5% to 2.8% pa.
Refining NZ said an announcement of the initial interest rate for the subordinated notes will be made following a bookbuild process, expected to be completed on or about this Thursday.
The offer is expected to open on Friday and close on December 12.
The subordinated notes are expected to be quoted on the NZX Debt Market.