National carrier Air New Zealand has confirmed that, as tipped by interest.co.nz last month, it's eyeing its first bond issue in 20 years.
The airline said in a stock exchange statement today that it's considering making an offer to the public of unsecured, unsubordinated fixed rate bonds that would mature on November 15, 2016.
"The size of the offer being considered is up to NZ$150 million and the funds raised from the offer will be used for the general business purposes of the Air New Zealand Group," the company said.
"The interest rate would be determined by Air New Zealand Limited in consultation with the Joint Lead Managers (First NZ Capital Securities Limited and Craigs Investment Partners Limited) and announced on or before the opening date of the offer, which is expected to be 5 September 2011."
Air New Zealand's last bond issue was a wholesale issue in 1991. Moody's Investor Services has a Baa3 credit rating on Air New Zealand, its lowest investment grade rating, with a negative outlook.
The National Party plans to reduce the government's 74.69% stake in Air New Zealand, to no lower than 51%, should it be re-elected in November's election.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.