Infratil Limited is considering making an offer of Infrastructure Bonds to the retail market.

The Infrastructure Bonds are likely to have a  maturity profile of approximately five years. The bonds will constitute a new series under Infratil's Infrastructure Bond Programme, and will be issued on similar terms to existing series of dated Infrastructure Bonds. The net proceeds of the Infrastructure Bonds will be used for general corporate purposes of Infratil including repayment of debt and lengthening the maturity profile of total debt facilities.

The offer is likely to consist of two tranches.  Under the first tranche, Infrastructure Bonds will be offered to all investors in New Zealand.  Under the second tranche, holders of the existing Infrastructure Bonds maturing on 15 May 2011 will be offered the opportunity to exchange all or some of their 2011 Bonds for new Infrastructure Bonds. 

An announcement of the offer size of each tranche and the interest rate for the Infrastructure Bonds is expected to be made on or around the opening of the offer.