Summary Funding & Foreign Currency Risk
Frequently Asked Questions
Infratil’s approach to using debt
Infratil uses debt in either a bridging capacity for relatively short term funding needs, or for longer term asset funding when the cashflows of the relevant assets are robust and can comfortably service the debt obligations.
To minimize the risk and cost associated with rolling debt over Infratil has mainly borrowed via long dated bonds issued into the NZ domestic market. Other options such as private placements to US institutions and other long term investors are also monitored, but to date have not been as attractive as domestic issuance.
Infratil uses proportionately lower levels of bank funding because bank debt tends to be for no more than 3 years.
Infratil’s 100% subsidiaries tend to have low or no debt. NZ Bus has no debt while Infratil Airports Europe and Infratil Energy Australia have only $50million of working capital facilities between them.
Wellington Airport and TrustPower are subsidiaries of Infratil, but are not wholly owned. Their debt is not included in this profile as both companies undertake their own funding activities and Infratil has no obligations in respect of this debt and is not liable for any of their liabilities.
What is Infratil's debt profile 31 March 2009?
Infratil and its wholly owned subsidiaries have four distinct types of debt. These are:
Infratil bank borrowing. Mainly this is undertaken by Infratil but the Infratil Energy Australia group and Infratil Airports Europe also have working capital facilities which are effectively guaranteed by Infratil. Borrowing by a 100% subsidiary which is not guaranteed by Infratil. At present this comprises only the Redeemable Preference funding noted in the following table. Subordinated bonds issued by Infratil. These are fixed coupon bonds which mature as noted in the table. Subordinated perpetual bonds issued by Infratil. The coupon on these bonds is reset each 15 November at 1.5% over the then one year bank base rate for quarterly coupon loans. Form Value $m Net bank debt * $323.2 Redeemable Prefernce Shares maturing 2011 $140.0 Bonds maturing November 2010 7.25%pa $0.7 Bonds maturing November 2011 8.25% $121.0 Bonds maturing November 2011 8.5% $20.2 Bonds maturing November 2012 7.75% $57.4 Bonds maturing September 2013 8.5% $85.3 Bonds maturing November 2015 8.5% $152.8 Bonds maturing November 2020 8.5% $80.5 Perpetual Bonds $239.9 Total $1,211,9 * Infratil has bank facilities amounting to $520 million and two subsidiaries have working capital type facilities amounting to $54m. As noted in the table above, as at 31 March 2009 net borrowings under these facilities of $323 million.
Infratil's facilities are provided by ANZ National Bank Limited, Bank of New Zealand, Commonwealth Bank of Australia, The Hongkong and Shanghai Banking Corporation Limited and Westpac Banking Corporation.Recent Debt Renewals/Activity
Over the last year Infratil and wholly owned subsidiaries had $368 million of debt fall due. All were re-exteneded.
What Infratil equity securities are on issue 31 March 2009?
Infratil has three equity shares on issue:
Shares on issue 520,211,418 IFTWB 84,398,343. Each warrant entitles the holder to buy one Infratil share for $1.62 at any time up to 10 July 2009.
The warrants were originally issues at no cost to shareholders and all three securities (and Infratil’s bonds are listed on the New Zealand Stock Exchange)IFTWC 52,825,848. Each warrant entitles the holder to buy one Infratil share for $4.12 at any time up to 29 June 2012 What is Infratil's foreign exchange exposure? (as at 31 March 2009)
Infratil's offshore investments are funded from New Zealand meaining that fluctuations in the value of the NZ$ against the currencies of Australia, USA, UK will change the NZ$ value of the holdings. Infratil has occasionally instituted hedges against changes in the value of the NZ$ against these currencies, this has mainly been in repect of when investments are being made or sold or when the NZ$ is appreciably over/under valued.
The Investment portfolio comprises:$000 NZ$ value
Offshore
TrustPower 1,122.5 Infratil Energy Australia Group 221.1 A$182.1 Energy Developments 73.3 A$60.4 Wellington Airport 285.9 Infratil Airports Europe 221.8 £88.0 NZ Bus 210.9 Infratil Infrastructure Property 35.4 Other 189.7 Total 2,360.6
Go to top
Print Page
Smaller
