Contact registers PDS for green Capital Bond offer
Contact Energy Limited Level 2 Harbour City Tower, 29 Brandon Street, Wellington 6011 | PO Box 10742, Wellington 6143
P: +64 4 499 4001 | F: +64 4 499 4003 | W: contactenergy.co.nz
29 October 2021
Contact registers product disclosure statement for
green Capital Bond offer
Contact Energy Limited (Contact) has today registered a product disclosure statement
(PDS) for an offer of up to $200 million (with the ability to accept up to an additional $25
million of oversubscriptions at Contact’s discretion) of unsecured subordinated green capital
bonds (Capital Bonds) to New Zealand retail and institutional investors.
The proceeds of the offer will be used by Contact for the financing and refinancing of
renewable generation and other eligible assets in accordance with the terms of Contact’s
Green Borrowing Programme framework.
The Capital Bonds have a maturity date of 19 November 2051 but may be redeemed early in
certain circumstances from 19 November 2026, or earlier for tax or rating agency reasons.
The Capital Bonds are expected to have a credit rating of BB+ from S&P Global Ratings,
reflecting their subordination and the potential deferral of interest payments.
The initial interest rate, which applies for the first five years, will be the sum of the five-year
swap rate plus the margin, subject to a minimum interest rate. The margin and initial interest
rate will be determined following a bookbuild process on 12 November 2021 and will be
announced by Contact via NZX shortly thereafter.
For so long as the Capital Bonds remain outstanding, the interest rate will be reset at five-
yearly intervals to be equal to sum of the five-year swap rate, the margin and a step-up of
0.25%, unless otherwise determined as part of a successful election process.
The offer is expected to open on 8 November 2021 (with the indicative margin range and
minimum interest rate announced on the same date) and close on 12 November 2021. The
Capital Bonds are expected to be issued on 19 November 2021 and quoted on the NZX
Debt Market on 22 November 2021.
Details of the offer and the Capital Bonds are contained in the PDS, which is available on
the online Disclose Register maintained by the Companies Office
(www.business.govt.nz/disclose, offer number OFR13200). Copies of the PDS and
Contact’s investor presentation are also available at www.contact.co.nz/capitalbondoffer, or
by contacting one of the Joint Lead Managers to the offer (listed below) or your usual
financial adviser.
There is no public pool for the offer, with all of the Capital Bonds being reserved for clients of
the Joint Lead Managers, NZX participants and other approved financial intermediaries.
Interested investors can register their interest with the Joint Lead Managers (details below)
or their usual financial adviser.
This offer is being made in accordance with the Financial Markets Conduct Act 2013.
Contact registers Product Disclosure Statement for green Capital Bond offer | 29 October 2021 | Contact Energy Ltd
2
Bank of New Zealand Craigs Investment Partners Limited
0800 284 017 0800 226 263
Forsyth Barr Limited
0800 367 227
-ends-
Investor enquiries
Matthew Forbes
Ph +64 21 072 8578
Media enquiries
Paul Ford
paul.ford@contactenergy.co.nz
Ph +64 21 809 589
---
Offer of unsecured subordinated green Capital Bonds
issued by Contact Energy Limited
29 October 2021
This document gives you important information about
this investment to help you decide whether you want to
invest. There is other useful information about this offer
on www.companiesoffice.govt.nz/disclose offer number
(OFR13200).
Contact Energy Limited has prepared this document in
accordance with the Financial Markets Conduct Act 2013.
You can also seek advice from a financial adviser to help
you to make an investment decision.
Product
Disclosure
Statement
PAGE | 1 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
1. KEY INFORMATION SUMMARY
WHAT IS THIS?
This is an offer (Offer) of unsecured, subordinated, redeemable, interest bearing green capital bonds (Capital Bonds). The
Capital Bonds are debt securities issued by Contact Energy Limited (Contact). You give Contact money, and in return
Contact promises to pay you interest and repay the money at the end of the term. If Contact runs into financial trouble, you
might lose some or all of the money you invested.
ABOUT CONTACT
Contact is a diversified and integrated energy company, focused on the generation of electricity and the sale of electricity,
gas and broadband in New Zealand. Contact owns and operates power stations throughout New Zealand with an electricity
generation portfolio comprising geothermal, hydroelectric and natural gas assets. Contact is listed on the NZX and has a
foreign exempt listing on ASX with its shares trading under the ticker code CEN. As at close of the Business Day before the
date of this PDS, it had a market capitalisation on the NZX of approximately NZ$6.3 billion.
PURPOSE OF THIS OFFER
The proceeds of this Offer will be used by Contact for the financing and refinancing of renewable generation and other
eligible Green Assets in accordance with the terms of the Green Borrowing Programme Framework. See section 4 (Purpose
of the Offer) and section 5 (Key features of the Capital Bonds) of this PDS for more information.
KEY TERMS OF THE OFFER
Issuer Contact Energy Limited
Description of
the Capital
Bonds
Unsecured, subordinated, redeemable, interest bearing green capital bonds.
See section 5 of this PDS (Key features of the Capital Bonds) for more information.
Term 30 years, maturing on the Maturity Date (19 November 2051) if not Redeemed before that date.
Offer amount Up to $200 million (with the ability to accept oversubscriptions of up to an additional $25 million at
Contact's discretion).
Interest Rate The Capital Bonds will pay a fixed rate of interest from the Issue Date to the First Reset Date.
This initial Interest Rate will be determined by Contact in conjunction with the Joint Lead Managers
following the Bookbuild. It will be set at the percentage per annum equal to the sum of the Benchmark
Rate (determined on the Rate Set Date) plus the Margin, subject to the Minimum Interest Rate.
If not Redeemed prior, the Interest Rate applying from each Reset Date up to but excluding the next
Reset Date will be a fixed rate of interest expressed as a percentage per annum equal to the then
Benchmark Rate on that Reset Date plus the Margin plus the Step-up Percentage, provided that if a
Successful Election Process has been completed the Interest Rate after each Reset Date will be as
set out in the relevant Election Notice.
See section 2 (Key dates and Offer process) and section 3 (Terms of the Offer) of this PDS for more
information.
Interest
Payment Dates
Quarterly in arrear on 19 February, 19 May, 19 August and 19 November (or if that scheduled day is
not a Business Day, the next Business Day), with the first Interest Payment Date being 19 February
2022, subject to Contact's right to defer payment of interest as described under 'Discretionary deferral
of interest' below.
Discretionary
deferral of
interest
Contact may defer payment of interest on the Capital Bonds at any time for up to five years at its sole
discretion.
See section 3 (Terms of the Offer) of this PDS for more information.
Election
Process
Not earlier than 6 months and not later than 30 Business Days before a Reset Date, Contact may give
notice of its intention to run an Election Process. See section 5 of this PDS (Key features of the
Capital Bonds) for more information.
Opening Date 8 November 2021.
PAGE | 2 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
NO GUARANTEE
Contact is the issuer and the sole obligor in respect of the Capital Bonds. No other person guarantees the Capital Bonds.
HOW YOU CAN GET YOUR MONEY OUT EARLY
Early Redemption
The Capital Bonds have a term of 30 years. However, the Capital Bonds may be Redeemed prior to the Maturity Date in
limited circumstances. Contact may elect to Redeem some or all of your Capital Bonds on (i) any Reset Date or (ii) any
Interest Payment Date after a Reset Date if a Successful Election Process has not been undertaken in respect of that Reset
Date. Contact may also elect to Redeem all (but not some only) of your Capital Bonds at any time if (i) there are less than
100,000,000 Capital Bonds on issue, (ii) a Tax Event occurs or (iii) a Rating Agency Event occurs.
The Supervisor may elect (and must elect if directed by a Bondholder Special Resolution) to demand for repayment of all of
your Capital Bonds early on the occurrence of an Event of Default which is continuing.
In some situations Contact must Repurchase your Capital Bonds early as part of an Election Process.
See section 5 of this PDS (Key features of the Capital Bonds) for more information.
Sale of Capital Bonds
Contact intends to quote the Capital Bonds on the NZX Debt Market. This means you may be able to sell them on the NZX
Debt Market before the end of their term if there are interested buyers. If you sell your Capital Bonds, the price you get will
vary depending on factors such as the financial condition of Contact and movements in market interest rates. You may
receive less than the full amount that you have paid for them.
HOW CAPITAL BONDS RANK FOR REPAYMENT
The Capital Bonds are referred to as subordinated bonds because they are subordinated to all other indebtedness of
Contact, other than indebtedness expressed to rank equally with, or subordinate to the Capital Bonds. On a liquidation of
Contact, your claim for repayment of the Redemption Amount will rank:
• behind liabilities preferred by law, guaranteed liabilities, other borrowings secured over assets of Contact and other
unsubordinated liabilities;
• equally with other Bondholders and with all unsecured and subordinated financial indebtedness of Contact (for example,
any other bonds ranking equally with the Capital Bonds that may be issued by Contact in the future); and
• ahead of claims of holders of ordinary shares in Contact and holders of securities and other financial products and
financial indebtedness that rank after the Capital Bonds (including any bonds ranking behind the Capital Bonds that may
be issued by Contact in the future).
See section 5 of this PDS (Key features of the Capital Bonds) for more information.
NO SECURITY
The Capital Bonds are not secured.
KEY RISKS AFFECTING THIS INVESTMENT
Investments in debt securities have risks. A key risk is that Contact does not meet its commitments to repay you or pay you
interest (credit risk). Section 6 of the PDS (Risks of investing) discusses the main factors that give rise to the risk. You
should consider if the credit risk of these debt securities is suitable for you. The interest rate for these Capital Bonds should
also reflect the degree of credit risk. In general, higher returns are demanded by investors from businesses with higher risk
of defaulting on their commitments. You need to decide whether the Offer is fair.
Closing Date 12 November 2021 at 12.00pm.
Minimum
application
amount
$5,000 and multiples of $1,000 thereafter.
Further
payments, fees
or charges
Taxes may be deducted from interest payments on the Capital Bonds. See section 7 of this PDS (Tax)
for more information. You are not required to pay brokerage or any other fees or charges to Contact to
purchase the Capital Bonds. However, you may have to pay brokerage to the firm from whom you
receive an allocation of Capital Bonds or for the transfer of Capital Bonds.
PAGE | 3 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Contact considers that the most significant risk factors are:
• Risks relating to managing the energy supply/demand balance – Contact faces the dual risks of oversupply/demand
reduction on the one hand and undersupply/demand above expectations on the other. Energy market oversupply may
occur leading to low wholesale prices and a reduction in Contact's revenue and profit. Alternatively, energy market
undersupply could occur leading to unsustainably high wholesale prices and potentially adverse Government
intervention in an attempt by them to rebalance the market.
• Risks relating to regulation – material changes to market regulation by the Government or regulators (such as the
Electricity Authority or the Commerce Commission) could have a material impact on Contact’s financial performance.
Contact’s decarbonisation strategy aligns with the Government’s aspirations of 100% renewable electricity generation by
2030; however, an interventionist approach by politicians or regulators could reduce Contact’s ability to respond to
market conditions and may impose greater costs or constraints that could have a material impact on Contact's business.
This summary does not cover all of the risks of investing in these Capital Bonds. You should also read section 6 of this PDS
(Risks of investing) and section 5 of this PDS (Key features of the Capital Bonds).
WHAT IS CONTACT'S CREDIT RATING?
A credit rating is an independent opinion of the capability and willingness of an entity to repay its debts (in other words, its
creditworthiness). It is not a guarantee that the financial product being offered is a safe investment. A credit rating should be
considered alongside all other relevant information when making an investment decision.
Contact has been rated by S&P Global Ratings (S&P). S&P gives ratings from AAA through to C. S&P’s ratings may be
modified with a (+) or (-) sign to show relative standing within a rating category.
As at the date of this PDS, Contact has been assigned a long term credit rating of BBB with a stable outlook by S&P. The
Capital Bonds are to be rated by S&P. Contact expects the initial credit rating assigned to the Capital Bonds by S&P will be
BB+. This is two notches below Contact’s issuer credit rating. One notch is deducted for the Capital Bonds being
subordinated and a second notch is deducted because of the potential for interest payments to be deferred.
S&P
Contact's
credit rating
BBB (stable
outlook)
Expected
Capital Bond
issue credit
rating BB+
Rating
AAA AA A
BBB BB
B CCC CC to C
Summary
description
(capacity of
issuer to meet
its financial
obligations)
Extremely
strong
Very
strong
Strong Adequate Less
vulnerable
More
vulnerable
Currently
vulnerable
Currently
highly
vulnerable
Approximate
probability of
default over 5
years*
1 in 600 1 in 300 1 in 150 1 in 30 1 in 10 1 in 5 1 in 2
*The approximate, median likelihood that an investor will not receive repayment on a five-year investment on time and in full based upon historical default rates
published by S&P, Moody's and Fitch (source: Reserve Bank of New Zealand publication "Explaining Credit Ratings", dated November 2008)
WHERE YOU CAN FIND OTHER MARKET INFORMATION ABOUT CONTACT
The Offer is being made under a short-form disclosure process that Contact is permitted to use because the Capital Bonds
rank in priority to ordinary shares in Contact, which are traded on the NZX Main Board and the ASX. Contact is subject to a
disclosure obligation that requires it to notify certain material information to the market for the purpose of that information
being made available to participants in the market. Contact's page on the NZX website, which includes information made
available under the relevant disclosure obligation referred to above, can be found at www.nzx.com/companies/CEN.
PAGE | 4 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
CONTENTS
1. KEY INFORMATION SUMMARY ............................................................................................ 1
2. KEY DATES AND OFFER PROCESS ..................................................................................... 7
3. TERMS OF THE OFFER ......................................................................................................... 8
4. PURPOSE OF THE OFFER....................................................................................................13
5. KEY FEATURES OF THE CAPITAL BONDS.........................................................................14
6. RISKS OF INVESTING ...........................................................................................................22
7. TAX .........................................................................................................................................29
8. WHO IS INVOLVED?..............................................................................................................30
9. HOW TO COMPLAIN .............................................................................................................31
10. WHERE YOU CAN FIND MORE INFORMATION ...................................................................32
11. HOW TO APPLY ....................................................................................................................33
12. CONTACT INFORMATION ....................................................................................................34
GLOSSARY ..................................................................................................................................35
PAGE | 5 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Offer of Capital Bonds by Contact Energy
Dear Investor,
On behalf of the Board of Directors of Contact Energy (Contact), I am pleased to present you with this
opportunity to invest in Capital Bonds issued by Contact. This provides you with an opportunity to invest in one
of New Zealand’s leading renewable energy companies.
Our strategy
We are pursuing our long-term vision to build a better New Zealand by playing a leading role in the country’s
decarbonisation journey.
The societal push toward decarbonisation has combined with advances in technology to accelerate the shift
toward electrification across the economy. Clean, low-cost, renewable electricity will be increasingly attractive
and in demand. The Contact26 strategy we are pursuing will deliver decarbonisation by electrifying New
Zealand’s energy needs, as well as new global industrial supply chains.
We have strong capabilities in decarbonisation that mean we are well-positioned to take advantage of this shift.
This includes our existing portfolio of high quality, efficient, renewable generation assets delivering low-cost, low-
emission baseload electricity. In FY21, more than 80 per cent of the 8.4 terawatt hours of electricity generated
by Contact was from hydro and geothermal sources.
Contact also has a growing pipeline of renewable generation development options that are ready to back the
growing demand for electricity where it makes sense to invest. This includes additional geothermal
developments, and opportunities such as wind, and batteries for renewable energy storage.
One exciting development is in progress at Tauhara in the central North Island where we are building a 152
megawatt geothermal power station. We believe this project is New Zealand’s best low-carbon renewable
electricity development. Once completed in 2023 it will operate around the clock, will not be reliant on weather
and will be ideally positioned to displace baseload fossil fuel generation and significantly reduce New Zealand’s
emissions.
Environmental, Social and Governance (ESG) commitment
We know enhancing our strong environmental, social and governance credentials will help us create long-term
value. We have renewed our efforts here and we are in a good place with many ESG factors built into the DNA
of the company.
This starts with our Tikanga – our commitment to being a responsible organisation – and our built-in reliance on
natural resources, good people and strong communities to sustain our operations. It includes our market-leading
efforts around decarbonisation, integrated reporting, commitment to science-based targets, carbon disclosure,
diversity and inclusion, site-based environmental management, sustainability policies and our green borrowing
programme.
The Capital Bonds
The Capital Bonds will be certified as ‘green’ by the Climate Bonds Initiative as part of our green borrowing
programme and will be New Zealand’s first certified green capital bonds. This continues Contact’s leadership in
the sustainable financing area with all bi-lateral bank facilities converted to sustainability-linked loans earlier this
calendar year and all eligible debt now certified as 'green'.
PAGE | 6 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
The proceeds from the issue of the Capital Bonds will be used to effectively fund the repayment of Contact’s
green bonds that mature in November 2021 and to finance and refinance renewable generation and other green
assets.
The Board of Directors and management believe hybrid securities such as these Capital Bonds are an effective
capital management tool, and we intend to maintain these instruments as a key feature of the company’s capital
structure into the future.
Important details
This Product Disclosure Statement describes the Capital Bonds and the Offer and includes other important
information, including an overview of some of the key risks associated with investing which may affect your
returns and repayment of your investment.
Please read this document, the additional information contained on the Offer Register and Contact’s recent
market announcements carefully and in full. This includes our investor presentation and our 2021 Integrated
Report. You can find our announcements online at nzx.com under the code “CEN” and on our investor website
(contact.co.nz/aboutus/investor-centre).
We recommend you consult your financial advice provider before making any decisions with respect to investing
in the Capital Bonds.
Thank you
On behalf of our Board, I invite you to consider the Offer and would welcome your support of Contact.
Ngā mihi nui,
Robert McDonald
Chair
PAGE | 7 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
2. KEY DATES AND OFFER PROCESS
PDS lodged Friday, 29 October 2021
Announcement of Minimum Interest
Rate and indicative Margin range
Monday, 8 November 2021
Opening Date Monday, 8 November 2021
Closing Date Friday, 12 November 2021 at 12.00pm
Rate Set Date Friday, 12 November 2021
Issue Date Friday, 19 November 2021
Expected date of initial quotation
and trading of the Capital Bonds
on the NZX Debt Market
Monday, 22 November 2021
Interest Payment Dates 19 February, 19 May, 19 August and 19 November each year
*
First Interest Payment Date 19 February 2022
*
First Reset Date 19 November 2026
Expected date of equity credit
falling to minimal (0%)
19 November 2031
Maturity Date 19 November 2051
**
* If any scheduled Interest Payment Date is not a Business Day, payment will be made on the next Business Day. Interest payments may be
deferred at Contact's discretion, as described in this PDS.
** Unless Redeemed before the Maturity Date as described in this PDS.
This timetable is indicative only and Contact, in conjunction with the Joint Lead Managers, may change the dates
set out in this timetable. Contact has the right in its absolute discretion and without notice to vary the timetable
(including by opening or closing the Offer early, extending the Closing Date or choosing not to proceed with the
Offer). If the Closing Date is changed, subsequent dates may be changed accordingly.
PAGE | 8 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
3. TERMS OF THE OFFER
DESCRIPTION OF THE CAPITAL BONDS
Issuer
Contact Energy Limited.
Description of the
Capital Bonds
Unsecured, subordinated, redeemable, interest bearing debt securities.
Equity content
Intermediate.
S&P has assigned an “intermediate” equity content to the Capital Bonds. Where such
equity credit content is assigned, S&P will consider that the Capital Bonds comprise
50% equity when calculating its financial ratios for Contact. The equity content is
expected to fall to minimal (0%) from 19 November 2031.
Green Borrowing
Programme and
Climate Bonds
Standard
The Capital Bonds are Green Debt Instruments under Contact’s Green Borrowing
Programme Framework and are certified by the Climate Bonds Initiative based on the
Climate Bonds Standard. Contact has developed and adopted the Green Borrowing
Programme to ensure that, as at the date of this PDS, its processes for identifying
Green Assets and managing the use of the proceeds of the Capital Bonds are
consistent with the Green Bond Principles and the Climate Bonds Standard. A copy
of the Green Borrowing Programme Framework is available on Contact’s website:
www.contact.co.nz/aboutus/sustainability/financial-sustainability.
See section 5 of this PDS (Key features of the Capital Bonds) for more information.
Interest Rate
The Capital Bonds will pay a fixed rate of interest for the first five years until the First
Reset Date.
This Interest Rate for the initial five year period will be determined by Contact in
conjunction with the Joint Lead Managers following the Bookbuild. It will be set at the
percentage per annum equal to the sum of the Benchmark Rate (determined on the
Rate Set Date) plus the Margin, subject to the Minimum Interest Rate.
If not Redeemed prior, the Interest Rate applying from each Reset Date up to but
excluding the next Reset Date will be a fixed rate of interest expressed as a
percentage per annum equal to the then Benchmark Rate on that Reset Date plus
the Margin plus the Step-up Percentage.
If Contact runs an Election Process, a new Interest Rate may be set via that process
as described in section 5 of this PDS (Key features of the Capital Bonds) under the
heading 'Election Process'.
Indicative Margin
range and Minimum
Interest Rate
The indicative Margin range and Minimum Interest Rate will be announced by
Contact via NZX on or about the Opening Date.
Margin
The Margin for the Capital Bonds will be set by Contact (in consultation with the Joint
Lead Managers) on the Rate Set Date following the Bookbuild and will be announced
by Contact via NZX on the Rate Set Date.
PAGE | 9 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Interest Payment
Dates
Interest is scheduled to be paid on 19 February, 19 May, 19 August and 19
November (or if that scheduled day is not a Business Day, the next Business Day),
with the first Interest Payment Date being 19 February 2022, subject to Contact's
right to defer payment of interest as described under 'Discretionary deferral of
interest' below.
Payment of interest
and entitlement
Regular scheduled payments of interest will be of equal quarterly amounts.
Any interest on Capital Bonds payable on a date which is not an Interest Payment
Date will be calculated on the basis of the number of days elapsed and a 365-day
year, and shall accrue in respect of the period from, and including, the previous
Interest Payment Date until, but excluding, the date for payment of that interest.
Interest will be payable on an Interest Payment Date and (if the date on which
Redemption is to occur is not an Interest Payment Date) the date in respect of which
any Capital Bonds are to be Redeemed, to the Bondholder as at 5.00pm on the
relevant Record Date.
Discretionary
deferral of interest
Contact may defer payments of interest on the Capital Bonds at any time for up to
five years at its sole discretion by notifying Bondholders. Where an interest payment
has not been paid on its due date, notice of its deferral shall be deemed to have been
given. A failure to pay interest that has been deferred is not an Event of Default.
If an interest payment is deferred, the deferred interest will itself accrue interest at the
prevailing Interest Rate on the Capital Bonds until the Interest Payment Date on
which that deferred interest is paid.
Distribution Stopper
The Distribution Stopper will apply if and for so long as there is any Unpaid Interest
outstanding.
In summary, while the Distribution Stopper applies, Contact will not be able to pay
distributions or make any other payments on or with respect to shares or other
securities or indebtedness ranking equally with, or subordinate to, the Capital Bonds,
without obtaining a Bondholder Special Resolution, or in the case of securities or
indebtedness that rank equally with Capital Bonds where such action is undertaken
on a pro rata basis.
Election Process
No earlier than six months and not later than 30 Business Days before any Reset
Date, Contact may give to each Bondholder an Election Notice specifying New
Conditions proposed to apply from the next Reset Date. Bondholders may elect to
accept or reject the New Conditions in respect of some or all of their Capital Bonds.
If Contact declares a Successful Election Process then it is obliged to Repurchase
any Capital Bonds held by a Bondholder who has rejected the New Conditions for
the Repurchase Amount. If Contact does not wish to Repurchase all Capital Bonds
from those Bondholders that have rejected the New Conditions then Contact must
declare that the Election Process has failed, in which case the existing Conditions
will continue to apply and all Capital Bonds will remain outstanding.
See section 5 of this PDS (Key features of the Capital Bonds) under the heading
'Election Process' for more information.
PAGE | 10 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Optional early
Redemption by
Contact
Contact may, by giving Bondholders prior written notice, Redeem some or all of the
Capital Bonds on:
• any Reset Date for the Redemption Amount; or
• any Interest Payment Date after a Reset Date if a Successful Election Process
has not been undertaken in respect of that Reset Date for the Alternative
Redemption Amount,
provided that after any partial Redemption, there will still be at least 100,000,000
Capital Bonds outstanding. Any partial Redemption will be done on a proportionate
basis and may include adjustments to take account of the effect on marketable
parcels and other logistical considerations.
Contact may Redeem all (but not some only) of the Capital Bonds if:
• there are less than 100,000,000 Capital Bonds on issue for the Redemption
Amount;
• a Tax Event occurs for the Redemption Amount; or
• a Rating Agency Event occurs for the Alternative Redemption Amount.
Ranking
On a liquidation of Contact, the Capital Bonds will rank:
• behind liabilities preferred by law, guaranteed liabilities, other borrowings
secured over assets of Contact and other unsubordinated liabilities;
• equally with all other unsecured, subordinated obligations of Contact; and
• ahead of claims of holders of ordinary shares in Contact and holders of securities
and other financial products and financial indebtedness that rank after the
Capital Bonds.
See section 5 of this PDS (Key features of the Capital Bonds) under the heading
'Ranking' for more information.
No guarantee
Contact is the issuer and the sole obligor in respect of the Capital Bonds. No
subsidiary of Contact or any other person guarantees the Capital Bonds.
Events of Default
If an Event of Default occurs and is continuing the Supervisor may in its discretion,
and must upon being directed to do so by a Bondholder Special Resolution, declare
the Capital Bonds to be immediately due and payable.
A failure to pay interest that has been deferred is not an Event of Default. Contact
may defer payment of interest for up to five years at any time at its sole discretion.
The Events of Default are set out in the corresponding definition in clause 1.2 of the
Supplemental Trust Deed and are summarised in section 5 of this PDS (Key features
of the Capital Bonds) under the heading 'Events of Default'.
PAGE | 11 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
DESCRIPTION OF THE OFFER
Transfer restrictions
As a Bondholder, you may only transfer Capital Bonds if the transfer is in respect of
Capital Bonds having an aggregate Principal Amount that is an integral multiple of
$1,000. However, Contact will not register any transfer of Capital Bonds if the
transfer would result in the transferor or the transferee holding or continuing to hold
Capital Bonds with an aggregate Principal Amount of less than $5,000, unless the
transferor would then hold no Capital Bonds.
Sale of less than
Minimum Holding
If you hold less than the requisite Minimum Holding of Capital Bonds, Contact may
give notice of its intention to exercise a power of sale in respect of those Capital
Bonds. If that power becomes exercisable Contact may arrange for the sale of your
Capital Bonds through the NZX Debt Market (or in some other manner approved by
NZX) and account to you the net proceeds of such sale.
Further payments,
fees or charges
You are not required to pay brokerage or any other fees or charges to Contact to
purchase the Capital Bonds. However, you may have to pay brokerage to the firm
from whom you receive an allocation of Capital Bonds or for the transfer of Capital
Bonds.
Offer amount
Up to $200 million (with the ability to accept oversubscriptions of up to an additional
$25 million at Contact's discretion).
The final Offer amount will be determined by Contact in conjunction with the Joint
Lead Managers and announced via NZX on or about the Rate Set Date.
Issue price
$1.00 per Capital Bond, being the Principal Amount of each Capital Bond.
Who may apply
under the Offer
All of the Capital Bonds offered under the Offer (including any oversubscriptions)
have been reserved for subscription by clients of the Joint Lead Managers, NZX
Firms and other approved financial intermediaries invited to participate in the
Bookbuild.
There will be no public pool for the Capital Bonds.
Opening Date
8 November 2021.
Closing Date
12 November 2021 at 12.00pm.
Minimum
subscription
$5,000 and multiples of $1,000 thereafter.
How to apply
Application instructions are set out in section 11 of this PDS (How to apply).
No underwriting
The Offer is not underwritten.
PAGE | 12 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
OTHER DOCUMENTS
The terms of the Capital Bonds, and other key terms of the Offer, are set out in the Master Trust Deed, as
supplemented by the Supplemental Trust Deed.
You should read each of these documents. Copies may be obtained from the Offer Register at
www.companies.govt.nz/disclose, offer number OFR13200. Copies are also available at
www.contact.co.nz/capitalbondoffer.
Quotation
An application has been made to NZX for permission to quote the Capital Bonds on
the NZX Debt Market and all of the requirements of NZX relating to that quotation
that can be complied with on or before the date of distribution of this PDS have been
duly complied with. However, the Capital Bonds have not yet been approved for
trading and NZX accepts no responsibility for any statement in this PDS.
NZX is a licensed market operator, and the NZX Debt Market is a licensed market,
under the Financial Markets Conduct Act 2013.
NZX Debt Market ticker code CEN060 has been reserved for the Capital Bonds.
Selling restrictions
This Offer is only made in New Zealand.
You may only offer for sale or sell any Capital Bonds in conformity with all applicable
laws and regulations in any jurisdiction in which it is offered, sold or delivered.
Contact has not taken and will not take any action which would permit a public
offering of Capital Bonds, or possession or distribution of any offering material in
respect of the Capital Bonds, in any country or jurisdiction where action for that
purpose is required (other than New Zealand).
Any information memorandum, disclosure statement, circular, advertisement or other
offering material in respect of the Capital Bonds may only be published, delivered or
distributed in compliance with all applicable laws and regulations (including those of
the country or jurisdiction in which the material is published, delivered or distributed).
By subscribing for or otherwise acquiring any Capital Bonds, you agree to indemnify,
among others, Contact, the Supervisor, the Joint Arrangers and the Joint Lead
Managers for any loss suffered as a result of any breach by you of the selling
restrictions referred to in this section.
Governing law
New Zealand.
PAGE | 13 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
4. PURPOSE OF THE OFFER
Contact believes that hybrid securities that are ascribed equity content such as the Capital Bonds are an
effective capital management tool and intends to maintain such instruments as a key feature of its capital
structure going forward.
The Capital Bonds provide investors with an opportunity to assist Contact in the financing of renewable power
generation assets that meet the Green Bond Principles and the Climate Bonds Standard.
The proceeds from the issue of the Capital Bonds will be used by Contact for the financing and refinancing of
renewable generation and other eligible Green Assets in accordance with the terms of the Green Borrowing
Programme Framework. Under the Green Borrowing Programme Framework, any surplus proceeds that are not
internally allocated to Green Assets will be temporarily invested in assets such as cash or cash equivalents or
otherwise in accordance with the Climate Bonds Standard to ensure the proceeds are not contaminated and
applied to non-Green Assets. In particular, as at the date of this PDS, Contact expects to apply $150 million of
the net proceeds of the Offer to effectively fund the repayment of the CEN030 green retail bond that matures on
15 November 2021. This purpose will not change, irrespective of the total amount that is raised under the Offer.
Whilst Contact's operations may extend to investments which are not governed by the Green Bond Principles,
proceeds of the Capital Bonds are earmarked for Green Assets.
If Contact fails to comply with the Green Borrowing Programme Framework or related matters, or if the Capital
Bonds cease to satisfy the Green Bond Principles published by the International Capital Market Association or
the Climate Bonds Standard:
• no Event of Default or any other breach will occur in relation to the Capital Bonds; and
• neither you nor Contact have any right for the Capital Bonds to be repaid early.
See also section 5 of this PDS (Key features of the Capital Bonds) for more information.
The Offer is not underwritten.
PAGE | 14 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
5. KEY FEATURES OF THE CAPITAL BONDS
A number of key features of the Capital Bonds are described in section 3 of this PDS (Terms of the Offer). The
other key features of the Capital Bonds are described in this section 5.
CONTACT'S GREEN BORROWING PROGRAMME FRAMEWORK
Green Bond Principles
The Green Bond Principles are voluntary process guidelines for issuing green bonds published by the
International Capital Market Association. As at the date of this PDS, the Green Bond Principles establish four
core components for an instrument to be considered to be a green bond:
• Use of proceeds: the proceeds of the green bond must be used to finance or refinance assets or other
projects that have clear environmental benefits.
• Process for evaluation and selection: the issuer should provide clear information to investors about the
issuer’s environmental sustainability objectives; the process for evaluation of eligible projects and associated
environmental and social risks; and the eligibility criteria.
• Management of proceeds: the issuer should have internal processes to track and attest to the use of the
proceeds of the green bond.
• Reporting: the issuer should keep and make readily available up to date information on the use of the
proceeds of the green bond.
Set out below is a summary of the way in which the Green Borrowing Programme Framework addresses the
Green Bond Principles as at the date of this PDS. To confirm the integrity of the Capital Bonds as a Green Debt
Instrument under its Green Borrowing Programme Framework, Contact has ensured that, as at the date of this
PDS, the Capital Bonds comply with both the Green Bond Principles and the Climate Bonds Standard.
Contact may amend the Green Borrowing Programme Framework from time to time. Any amendments to the
Green Borrowing Programme Framework would apply to the Capital Bonds. See under the 'Reporting' heading
below as to where you can access a copy of the Green Borrowing Programme Framework and related materials.
Certification and assurance
Contact's current Green Debt Instruments have been certified by CBI against the Climate Bonds Standard. In
summary, the CBI certification process involves both pre-issuance and post-issuance certification. The pre-
issuance certification consists of an assessment of Contact's internal processes, including its selection process
for Green Assets and the internal tracking of proceeds. Contact has received a pre-issuance certification from
CBI in respect of the Capital Bonds.
Contact has engaged KPMG to provide independent assurance of the Green Borrowing Programme to confirm
that the Green Borrowing Programme continues to meet the requirements of the Climate Bonds Standard and
the Green Bond Principles. Contact will seek to obtain further assurance at least annually.
Copies of the CBI certification and the latest KPMG independent limited assurance report (which details the
assurance procedures and standards followed) can be found here:
www.contact.co.nz/aboutus/sustainability/financial-sustainability.
PAGE | 15 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Use of proceeds
In accordance with the Green Borrowing Programme Framework and as described in section 4 of this PDS
(Purpose of the Offer), the proceeds of this Offer will be used by Contact for the financing and refinancing of
renewable generation and other eligible Green Assets.
The Green Borrowing Programme Framework seeks to identify the use of proceeds of Green Debt Instruments
issued under the Green Borrowing Programme Framework, and ensure that the proceeds are applied to
expenditure within Contact’s business and operations that promote the transition to a low carbon and climate
resilient economy. Specifically, the proceeds of Contact’s Green Borrowing Programme will be used to finance
Green Assets, namely:
• existing renewable power generation assets, specifically hydropower and geothermal generation assets; and
• future renewable power generation assets including hydropower, geothermal, wind and solar generation
assets, and batteries for renewable energy storage,
that meet the Green Bond Principles and the Climate Bonds Standard, including CBI’s relevant sector specific
criteria.
Evaluation and selection
Contact’s Green Borrowing Programme will be managed in accordance with its Green Borrowing Programme
Framework and established governance arrangements. The Board of Contact were involved in the initial
development of the Green Borrowing Programme Framework and continue to have oversight through review of
the annual Green Borrowing Programme assurance statements (as detailed under the 'Reporting' heading
below).
Contact has established a Sustainable Finance Committee (SFC) made up of senior treasury, financial
accounting, sustainability and investor relations personnel. The SFC will meet at least semi-annually, prior to
half yearly and full year reporting, to review relevant elements of the Green Borrowing Programme including, but
not limited to compliance with the Green Borrowing Programme Framework including the Green Bond Principles
and the Climate Bonds Standard together with relevant sector specific criteria.
Management of proceeds
The Green Borrowing Programme Framework provides that Contact will track the receipt and use of proceeds of
the Capital Bonds via its internal information systems. In addition, to ensure appropriate earmarking for the
purpose of internal monitoring and external reporting of proceeds, Contact has established a register that
contains: a) details of all Green Debt Instruments under its Green Borrowing Programme Framework and b) all
Green Assets and their book value for existing assets and project cost for assets not yet commissioned. Any
surplus proceeds that are not internally allocated to Green Assets will be invested in cash deposits, government
bills, government bonds, used to repay other Green Debt Instruments or otherwise in accordance with the
Climate Bonds Standard to ensure the proceeds are not contaminated and applied to non-Green Assets.
Reporting
Contact recognises investor interest in transparency and disclosure and, accordingly, the Green Borrowing
Programme Framework provides that Contact intends to make information available as follows:
PAGE | 16 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Disclosure Item Timing Location
Green Borrowing
Programme
Framework
Upon announcement of the Green
Borrowing Programme Framework and
following any review/update
The sustainability section of Contact's
website
(www.contact.co.nz/aboutus/sustainability)
Assurance
statements
Upon completion of each assurance
process to extent allowed by assurer
CBI certification
Upon announcement of the Green
Borrowing Programme Framework, and
upon completion of any subsequent
certification process
Green Borrowing
Programme report
– use of proceeds
At least semi-annually in line with half
and full year results reporting
Green Borrowing
Programme report
– impact analysis
Annually in line with full year results
reporting
Annual report available on Contact's website
(www.contact.co.nz)
Contact also discloses its performance in respect of emissions and climate related issues in its annual reports
using the guidelines recommended by the Task Force on Climate-related Financial Disclosures.
No Event of Default
If Contact fails to:
• allocate the proceeds of the Capital Bonds as described in this PDS or the Green Borrowing Programme
Framework;
• meet the Climate Bonds Standard, Green Bond Principles or the Green Borrowing Programme Framework in
respect of the Capital Bonds;
• maintain CBI certification of the Capital Bonds or other Green Debt Instruments;
• comply with any environmental laws and standards in respect of the Green Assets or otherwise;
• receive further assurance from CBI;
• comply with the Green Borrowing Programme Framework (including updating its website in respect of the
Capital Bonds);
• notify Bondholders that the Capital Bonds cease to comply with the Green Borrowing Programme
Framework, the Green Bond Principles or the Climate Bonds Standard; or
• in any other way ensure that the Capital Bonds retain their green attributes,
then:
• no Event of Default or any other breach will occur in relation to the Capital Bonds;
• neither you nor Contact have any right for the Capital Bonds to be repaid early; and
• Contact may, depending on the exact circumstances, provide the market with an update in relation to the
ongoing status of the Capital Bonds as green capital bonds.
Contact's obligations under the Trust Deed are not affected by the labelling of the Capital Bonds as green capital
bonds, and any breach of the Trust Deed is to be determined without regard to any such green bond label, the
Green Borrowing Programme Framework, the Green Bond Principles or the Climate Bonds Standard.
PAGE | 17 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
RANKING
Ranking on liquidation
On a liquidation of Contact the Capital Bonds will rank as unsecured subordinated obligations of Contact.
Amounts owing under Contact's bank debt, senior bonds, US private placement notes, commercial paper,
unsubordinated general and trade creditors, indebtedness preferred by law and secured indebtedness will rank
in a liquidation in priority to amounts owing under the Capital Bonds. The ranking of the Capital Bonds on a
liquidation of Contact is summarised in the following diagram.
Diagram showing ranking of the Capital Bonds on a liquidation of Contact
Ranking
Ranking on
liquidation
Type of liability/equity Amount
1
Higher
ranking/earlier
priority
Liabilities that rank
in priority to the
Capital Bonds
Liabilities preferred by law (e.g. Inland Revenue
and employee entitlements)
2
$53 million
Other borrowings secured over assets of
Contact
$21 million
Unsubordinated liabilities, including to US
private placement noteholders, holders of
commercial paper, banks and certain financial
institutions that have lent money to Contact,
trade and general creditors and certain
derivative transactions
$1,242 million
Lower
ranking/later
priority
Liabilities that rank
equally with the
Capital Bonds
(including the
Capital Bonds)
Capital Bonds
3
$225 million
Liabilities that rank
below the Capital
Bonds
N/A $Nil
Equity
4
Shares, reserves and retained earnings $2,927 million
Notes to diagram:
1
Amounts shown above are indicative based on the financial position of Contact as at 30 June 2021, being Contact's most recent balance
date, adjusted for the issue of the Capital Bonds and the repayment of the maturing $150 million retail bond (with the balance of the Offer
proceeds going to short-term deposits). These amounts are subject to rounding adjustments.
2
Liabilities that rank in priority to the Capital Bonds on liquidation include certain employee entitlements for unpaid salaries and wages,
holiday pay and bonuses and PAYE deductions and amounts owing to Inland Revenue. There are typically other preferred claims which
arise when a company is liquidated which are not possible to foresee and cannot therefore be quantified.
3
This table assumes $225 million of Capital Bonds are issued under the Offer. Assuming the adjustments in note 1 above, if less than $150
million of Capital Bonds are issued under the Offer then the unsubordinated liabilities will be higher by the amount of the shortfall.
4
The amount of equity stated in the diagram includes an amount in relation to Contact's existing quoted financial products (i.e. Contact's
ordinary shares which are quoted on the NZX Main Board).
Further borrowing and security
After the issue of the Capital Bonds, Contact may (without the consent of Bondholders) borrow money or
otherwise incur liabilities from time to time that rank equally with or in priority to the Capital Bonds on a
PAGE | 18 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
liquidation of Contact and/or grant security over some or all of its assets and/or provide guarantees in favour of
certain creditors.
The financial covenants, negative pledge and other terms described below limit, to some extent, the ability of
Contact to borrow money that ranks equally with, or above, the Capital Bonds.
Restrictions on borrowing
The terms of the Capital Bonds do not limit the ability of Contact to borrow further money. The Trust Deed does
not contain any restrictions on the ability of Contact to borrow or incur further indebtedness.
The Negative Pledge Deed contains certain financial and other covenants that various providers of unsecured
unsubordinated financial accommodation of any nature whatsoever now or in the future (Financiers) have the
benefit of. Certain terms in the Negative Pledge Deed limit the ability of Contact to borrow money. Pursuant to
the Negative Pledge Deed Contact covenants in favour of the Financiers that, among other things, the ratio of (i)
consolidated unsubordinated group debt to (ii) consolidated unsubordinated group debt plus shareholders’ funds
(all as described in the Negative Pledge Deed) must not exceed 60%.
Bondholders do not, and will not, have the benefit of the Negative Pledge Deed, and the restrictions and other
terms in the Negative Pledge Deed may be amended or waived without the consent of or notice to the
Bondholders.
Restrictions on granting security
Among other things, the Negative Pledge Deed provides that Contact will not grant or permit to subsist any
security interest in its assets except under certain limited exceptions set out in the Negative Pledge Deed,
including a general exception for a principal amount so secured of up to 5% of consolidated Total Tangible
Assets (as defined in the Negative Pledge Deed).
The Capital Bonds are unsecured. Bondholders do not, and will not, have the benefit of the Negative Pledge
Deed, and the restrictions and other terms in the Negative Pledge Deed may be amended or waived without the
consent of or notice to the Bondholders.
Guarantees
The Capital Bonds are not guaranteed by any person. Bondholders do not, and will not, have the benefit of the
Negative Pledge Deed, and will not receive the benefit from any guarantees granted in favour of the Financiers.
SUPERVISOR
The Supervisor is appointed to act as supervisor and trustee for the Bondholders on the terms contained in the
Trust Deed.
You can only enforce your rights under the Capital Bonds through the Supervisor (although you can enforce your
rights under the Capital Bonds against Contact directly if the Supervisor is obliged to enforce, but has failed to do
so).
PAGE | 19 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
EVENTS OF DEFAULT
The Events of Default are contained in the Supplemental Trust Deed. They include:
• a failure by Contact to make a payment, including of principal or interest (to the extent payment of interest
has not been, or is not capable of being, deferred) due in respect of the Capital Bonds, including on
Redemption, when due (subject to applicable grace periods);
• a failure by Contact to comply with the Distribution Stopper (when it is applicable); and
• an insolvency event of Contact occurs in the nature of the appointment of a liquidator, receiver, statutory
manager, administrator or any analogous appointment.
This summary does not cover all of the Events of Default. For full details of the Events of Default see the
corresponding definition in clause 1.2 of the Supplemental Trust Deed.
If an Event of Default occurs and is continuing, the Supervisor may in its discretion, and must upon being
directed to do so by a Bondholder Special Resolution, declare the Principal Amount and any accrued interest on
the Capital Bonds due and payable. If this occurs, Contact must repay to Bondholders the Redemption Amount.
ELECTION PROCESS
No earlier than six months and not later than 30 Business Days before any Reset Date, Contact may provide
notice specifying new terms and conditions proposed to apply from the next Reset Date. The New Conditions
may modify the Conditions applying to the Capital Bonds (including, for example, the Interest Rate, the Margin
and future Reset Dates). If Contact runs an Election Process, Contact will send you an Election Notice asking
you to accept or reject the New Conditions of the Capital Bonds that are proposed to apply from the relevant
Reset Date. You can accept or reject the New Conditions in respect of some or all of your Capital Bonds.
You will then need to make your decision and respond to the Election Notice within the period specified by
Contact in the Election Notice which must be at least 15 Business Days before the relevant Reset Date. If you
do not respond to, or fail to properly complete, the Election Notice you will be deemed to have accepted the New
Conditions and you will continue to hold Capital Bonds from the relevant Reset Date subject to the New
Conditions.
Following an Election Process Contact must determine (in its sole discretion) whether the Election Process
succeeded or failed. If Contact declares a Successful Election Process then it is obliged to Repurchase any
Capital Bonds held by a Bondholder who has rejected the New Conditions for the Repurchase Amount. Contact
may choose to establish a resale facility to seek buyers for those Capital Bonds.
If Contact does not wish to Repurchase all Capital Bonds from those Bondholders that have rejected the New
Conditions then Contact must declare that the Election Process has failed in which case the existing Conditions
will continue to apply and all Capital Bonds will remain outstanding.
Ineligible Holders may not receive an Election Notice. Instead, Ineligible Holders may have their Capital Bonds
Redeemed on the Reset Date for the Redemption Amount.
The diagram on the next page summarises the Election Process.
PAGE | 20 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
TAX EVENT
Contact may choose to Redeem all (but not some only) of the Capital Bonds for the Redemption Amount if a Tax
Event occurs.
If Contact chooses to Redeem the Capital Bonds in these circumstances, it will announce the Redemption via
NZX together with the date set for Redemption. Before making an election to Redeem the Capital Bonds,
Contact must provide to the Supervisor a certificate signed by two directors of Contact stating that a Tax Event
has occurred (including a description thereof and any reasonable supporting information or opinions requested
by the Supervisor) and is continuing as at the date of the certificate.
For full details of the definition of, and requirements for, a Tax Event see condition 1.2 in Schedule 1 of the
Supplemental Trust Deed.
RATING AGENCY EVENT
Contact may choose to Redeem all (but not some only) of the Capital Bonds for the Alternative Redemption
Amount if a Rating Agency Event occurs.
If Contact chooses to Redeem the Capital Bonds in these circumstances, it will announce the Redemption via
NZX together with the date set for Redemption.
For full details of the definition of, and requirements for, a Rating Agency Event see condition 1.2 in schedule 1
of the Supplemental Trust Deed.
PAGE | 21 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
OTHER RELEVANT INFORMATION ABOUT THE TRUST DEED
The Trust Deed contains a number of standard provisions, including in relation to the powers and duties of the
Supervisor, and the process for amending the Trust Deed. You can find a copy of the Trust Deed on the Offer
Register.
You should read the Trust Deed for further information.
PAGE | 22 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
6. RISKS OF INVESTING
INTRODUCTION
This section describes the following potential key risk factors:
• general risks associated with an investment in the Capital Bonds; and
• specific risks relating to Contact's creditworthiness.
The selection of risks has been based on an assessment of a combination of the probability of a risk occurring
and its potential impact (individually or in combination with other key risks) at the date of this PDS. There is no
guarantee or assurance that the importance of different risks will not change or that no other risks may emerge
over time.
You should carefully consider these risks (together with the other information in this PDS) before deciding to
invest in the Capital Bonds. This summary does not cover all of the risks of investing in the Capital Bonds.
The statement of risks in this section does not take account of the personal circumstances, financial position or
investment requirements of any particular person. It is important, therefore, that before making any investment
decision, you give consideration to the suitability of an investment in the Capital Bonds in light of your individual
risk profile for investments, investment objectives and personal circumstances (including financial and taxation
issues).
You should also carefully consider the features of the Capital Bonds which differ from the features of a standard
senior bond. Those features include the ability of Contact to defer interest, optional early redemption rights for
Contact, a margin step-up, an election process and the subordinated nature of the Capital Bonds.
RISKS
GENERAL RISKS: an investment in the Capital Bonds is subject to the following general risks
Credit risk on
Contact
There is a risk that you may not be able to recover your full principal investment
and/or any interest due and unpaid if Contact encounters severe financial difficulty or
becomes insolvent. In that case Contact may be unable to meet its obligations under
the Capital Bonds. If Contact defers interest payments in accordance with the terms
of the Capital Bonds you will not be able to take any action against Contact, unless
an Event of Default subsequently occurs.
See section 5 of this PDS (Key features of the Capital Bonds) for more information
on the ranking of the Capital Bonds in the event of a liquidation of Contact.
PAGE | 23 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Secondary market
risk
Contact intends to quote the Capital Bonds on the NZX Debt Market, which means
you may be able to sell them on the NZX Debt Market before the Maturity Date.
There is a risk that, if you wish to sell your Bonds before maturity:
• you may be unable to find a buyer; or
• the price (if any) at which you are able to sell them is less than the amount you
paid for them.
These outcomes may arise because of factors related to Contact's creditworthiness,
or because of other factors. These other factors may include the following:
• The fact that a trading market for the Capital Bonds never develops, or if it
develops is not very liquid. Although permission is expected to be granted to
quote the Capital Bonds on the NZX Debt Market, this does not guarantee any
trading market in the Capital Bonds;
• The level, direction and volatility of market interest rates. For example, if
market interest rates go up, the market value of the Capital Bonds would
typically be expected to go down and vice versa;
• The fact that Bondholders seeking to sell relatively small or relatively large
amounts of Capital Bonds may not be able to do so at prices comparable to
those available to other Bondholders;
• The subordinated nature of the Capital Bonds, possibility of interest payment
deferral and optional early redemption rights for Contact may also increase the
volatility of the market price of the Capital Bonds, and they may be more
sensitive generally to adverse changes in Contact's financial condition than
other debt securities; and
• The fact that the Capital Bonds may cease to meet (or Contact may fail to
comply with) the requirements of the Green Bond Principles or the Climate
Bonds Standard or that market practices, standards, principles or regulations
further develop in a way that the Capital Bonds are not consistent with.
PAGE | 24 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
SPECIFIC RISKS RELATING TO CONTACT'S CREDITWORTHINESS: Contact considers that the main
circumstances which could significantly affect, either individually or in combination, the future
financial position and financial performance of Contact, and therefore significantly increase the risk
that Contact may default on its payment obligations under the Capital Bonds are as follows.
Economic downturn
and other risks
arising from
COVID-19
While the New Zealand electricity industry has to-date not been as severely impacted
as some sectors of the New Zealand economy since the onset of the COVID-19
pandemic, the risk of economic downturn and other flow-on implications of COVID-19
has heightened some risks for Contact including:
• A potential material sustained reduction in electricity demand, particularly
among commercial and industrial consumers, increasing the risk of oversupply
of generation and depressed pricing in the wholesale market;
• Effects on the global supply chain and its impact on availability, costs and
delivery times of key items including materials;
• Consumers may experience greater difficulty in meeting energy costs with the
result that there may be increased regulatory focus on pricing or other
intervention;
• Ongoing community outbreaks of COVID-19 may mean New Zealand enters
further lockdown periods or COVID-19 becomes a long-term feature of life,
suppressing economic activity and energy demand;
• Key plant or facilities availability may be impacted by COVID-19 in the
community, meaning Contact would be unable to operate as it normally would;
• Ongoing border restrictions may affect Contact’s ability to obtain international
expertise required for delivering on the strategy or result in wider market
reluctance to commit to growth projects due to uncertainty; and
• As the Government evolves its COVID-19 strategy (and focuses on increased
levels of vaccination before ultimately ending lockdowns and reopening the
borders), this may lead to further disruption due to higher levels of COVID-19 in
the community.
These risks, and other unforeseen COVID-19 related matters, could adversely
impact the economy and/or Contact’s ability to operate its business and/or implement
its ongoing capital investment projects.
Oversupply / reduced
demand risk
Energy market oversupply may lead to low wholesale electricity prices and reduced
earnings. Potential key contributors to oversupply include:
• The potential closure of the Tiwai aluminium smelter in the future. The smelter
currently takes around 13% of national electricity production. The amended
electricity transmission and supply arrangements, and extension of operations
at the smelter announced recently provide some time for the electricity industry
to prepare for a potential closure of the smelter. It is expected that this will
result in the closure of some less efficient generation within the industry, and
provide time for the industry to develop alternative sources of electricity
demand. However, that may not occur, meaning any closure of the Tiwai
smelter in the future could still adversely impact the industry and Contact,
PAGE | 25 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
although the lower South Island transmission line upgrade will mitigate some of
this risk. There is also no guarantee that operations will continue at the smelter
until December 2024, despite the January 2021 announcement and any
expectation that this will be the case;
• Reduction in demand by other major industrial consumers, reducing demand for
electricity;
• The decreasing cost of renewable generation. As renewable generation
(particularly wind and solar) becomes more economic, there is the risk of
increased investment in renewable generation as part of decarbonisation efforts
by several different market participants resulting in wholesale market
oversupply; and
• Economic conditions. Reduction in demand could occur as a result of a
recessionary economic environment, whether or not arising from the COVID-19
pandemic.
The risks described below under Regulatory risk and Change in competitive
environment risk could also contribute to the risk of oversupply/reduced demand.
Undersupply/demand
above forecast risk
Energy market undersupply could occur, leading to unsustainably high wholesale
prices and an adverse Government intervention. The components of undersupply
risk include:
• Shorter-term:
o sudden thermal plant retirement, coincident fuel constraints, major plant or
grid outage, reduction in gas field delivery, rejection of coal generation as
an acceptable source of dry year cover increases wholesale prices; and
o a temporary spike in commodity prices and global supply chain constraints
due to increased demand as the world recovers from COVID-19, coupled
with new more onerous resource management act consenting
requirements delays the build of renewable generation; and
• Longer-term:
o limited forward investment in gas fields, thermal generation retirements,
and an inability of gas producers to attract capital for development
reducing the reliability of the electricity supply system leading to higher
prices and an increased risk from low hydrology years; and
o faster than expected decarbonisation to meet New Zealand’s 2050
emissions targets increases the demand for electricity before additional
renewable stations are built.
Regulatory risk
• Changes to market regulation by the Government or regulators such as the
Electricity Authority or the Commerce Commission could have a material impact
on Contact’s financial performance.
• Contact’s decarbonisation strategy aligns with the Government’s aspirations of
100 percent renewable electricity generation by 2030. However an
PAGE | 26 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
interventionist approach by politicians and/or regulators could reduce Contact’s
ability to respond to market conditions and may impose greater costs or
constraints on the business. Government-backed projects in the industry may
also distort existing market forces in a way that cannot currently be predicted
and which may be adverse to Contact.
• Regulators or Government bodies regularly release reports on the industry and
the latest of those is an Electricity Authority observations and preliminary issues
paper on its competition review of the wholesale market. It is possible that
regulatory change could be an eventual outcome of this review, which may
have long-term implications for the wholesale electricity market. Any impact this
has on Contact is currently too uncertain to form a view on.
• The Electricity Authority is also currently consulting on changes to its
transmission pricing methodology for a proposed final implementation by April
2023. The final adopted form may impose additional material costs on Contact
or Contact’s customers, and might negatively impact battery investment returns.
Contact seeks to mitigate these risks through ongoing engagement with the
Government and key regulators. Contact also actively participates in consultations
on areas of legal and regulatory reform that will have a direct impact on Contact's
business and financial performance.
Change in
competitive
environment risk
• New generation built by competitors of Contact could adversely affect the prices
that Contact can achieve in the wholesale market for electricity sales.
• Contact depends on its ability to compete effectively by providing products and
services that keep pace with consumer expectations at competitive prices. This
could be a challenge if there is a significant change in the competitive
environment, potentially leading to a material adverse impact on revenue if
Contact is not able to compete effectively.
Environment and
health & safety risk
• The nature of Contact’s business means that Contact and some of its workers
and contractors can be exposed to hazardous materials, heavy machinery and
dangerous plant. There is the potential for an incident or accident to occur at
one of Contact’s sites which results in serious injury. Non-compliance with
environmental and health and safety laws and regulations by either Contact or
its employees or contractors could result in fines or penalties, remediation costs
or claims made against Contact, as well as reputational damage.
• Changes to laws and regulations could result in an increase in required capital
expenditure or ongoing compliance costs.
Contact has a strong focus on ensuring the health and safety of its employees and
contractors, and it seeks to manage risks relating to environment and health and
safety through various mechanisms including through imposing strict contractual
requirements on, and management of, services provided by third parties.
PAGE | 27 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
IT systems and
infrastructure risk
• Contact is reliant on the performance of its and its suppliers’ technology
infrastructure to manage its widely geographically distributed generation assets
and other plant.
• If Contact’s information technology infrastructure was interrupted, compromised
or damaged, Contact could suffer loss of control of assets, inability to dispatch
electricity or gas into the market or adjust to pricing variations, resulting in
revenue loss, material harm to its reputation and/or significant expenditure to
restore functionality.
Data security risk
• Given Contact’s large customer base, its systems hold large volumes of
confidential personal and business data. Data held by Contact may be
accessed or used in an unauthorised manner, including due to a cyber-attack.
The frequency and sophistication of cyber-attacks on businesses is growing. If
Contact suffered a major cyber-attack or data security breach, Contact's
reputation would be damaged – which could lead to a loss of existing
customers, an inability to attract new customers and a corresponding loss in
revenue. Contact may also incur fines, penalties or claims as a result of any
privacy breach. Contact could also lose control of its assets, leading to risk of
damage or injury.
• Like many businesses Contact has experienced attempted attacks on its
systems from time to time. To date these have not resulted in any material
interruption, outage, suspension or loss of data, but there is a risk that a cyber-
attack is successful or another event including human or technical error or acts
of terrorism or vandalism results in a data breach or loss of capacity.
Contact invests considerable capital to ensure security and sufficient reliability and
diversity of its information technology infrastructure.
Significant or
prolonged
infrastructure
damage risk
• Contact is dependent on a number of key generation and transmission assets
located throughout the country, not all of which are owned by or under the
control of Contact. These assets, ancillary assets or infrastructure connecting
those assets to transmission and distribution networks, could be damaged or
destroyed by a natural disaster such as a major volcanic eruption, earthquake
or storm. This could result in a major interruption in Contact’s ability to
generate and dispatch electricity into the market, having a material adverse
impact on its financial position and performance.
Contact maintains insurance to cover it against certain events, but the insured sum
does not cover the full replacement value of all plant and insurance policies do not
cover all possible adverse events. To help manage this risk, Contact regularly
reviews the level and nature of its insurance cover.
Project and resource
risks
• The Tauhara project carries construction and project-related risks that Contact
considers normal for this type of investment. These risks include the risk of
accident or other health and safety event, supply-chain risks, errors in the
design, geotechnical conditions varying materially from what is expected, lack
of availability of specialist equipment or people, unfavourable weather
PAGE | 28 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
conditions for construction, contractor default, delay, cost overrun where pricing
is not fixed and failure to achieve intended specifications. These risks are in
part mitigated by the terms of the engineering, procurement and construction
contract which covers a significant amount of the Tauhara project capex.
• The resource consents that are required for the operation of the Wairakei
steamfield, and the associated Wairakei and Te Mihi power stations, expire in
2026. Renewal of these resource consents is a key focus of the Contact
management team but is subject to the determination of third party consenting
authorities outside of Contact’s control.
• Contact is also exposed to risks associated with geothermal generation and the
natural decline in the enthalpy from production wells. Enthalpy decline is
modelled in the project design but could be more significant than expected,
requiring a greater number of wells to be drilled or a lower output, which would
impact cost and performance of the plant.
• Contact has other projects that it may implement to maintain and improve
assets, reduce operating expenses, and introduce new products and services.
These other projects may be subject to similar project related risks as described
above in relation to Tauhara.
• While it continues to operate thermal plants, Contact is exposed to the risk of a
shortage in gas supplies. Recent reductions in production from the Kupe and
Pohokura fields exacerbate this risk. Contact is also exposed to the risk of its
hydro plants being unable to operate to full capacity (or at all) in the event of
extremely low water levels.
Project and resource risks are also mitigated to a large extent by Contact’s previous
experience of successfully implementing similar projects.
PAGE | 29 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
7. TAX
Resident Withholding Tax
If you are tax resident in New Zealand or otherwise receive payments of interest on the Capital Bonds that are
subject to the resident withholding tax (RWT) rules, Contact will deduct RWT from interest paid or credited to you
at the relevant rate, unless you produce to the Securities Registrar evidence that you are exempt from RWT on
or before the Record Date for the relevant payment.
Approved Issuer Levy
If you are not a resident of New Zealand for tax purposes and the interest on your Capital Bonds is subject to the
non-resident withholding tax (NRWT) rules, Contact will deduct approved issuer levy (AIL), in lieu of deducting
NRWT, from the interest payment unless you elect, and Contact agrees, for NRWT to be deducted or AIL is not
applicable under the law. Contact may apply the zero-percent rate of AIL (rather than the standard AIL rate of
2%) where it is able to do so. If the AIL regime or rate changes in the future, Contact reserves the right not to
deduct AIL.
Indemnity
If, in respect of any of your Capital Bonds, the Securities Registrar or Contact becomes liable to account for
withholding taxes, or make any payment of, or on account of, tax payable by you, then the Securities Registrar
and Contact shall be indemnified by you in respect of such liability.
General
There may be other tax consequences from acquiring or disposing of the Capital Bonds including income tax
consequences. If you have any queries relating to the tax consequences of the investment, you should obtain
professional advice on those consequences in light of your specific circumstances.
Taxes may affect your returns. The preceding information does not constitute taxation advice to any
Bondholder, is general in nature and limited to consideration of New Zealand taxation impacts as at the date of
this PDS.
PAGE | 30 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
8. WHO IS INVOLVED?
Name Role
Issuer Contact Energy Limited Issuer of the Capital Bonds.
Supervisor
The New Zealand Guardian
Trust Company Limited
Holds certain covenants on trust for the benefit of the
Bondholders, including the right to enforce Contact's
obligations under the Capital Bonds.
Joint Arrangers
Craigs Investment Partners
Limited and Forsyth Barr
Limited
Provides advice and assistance to Contact in arranging the
Offer.
Joint Lead
Managers
Bank of New Zealand,
Craigs Investment Partners
Limited and Forsyth Barr
Limited
Assists with the Bookbuild and with the marketing and
distribution of the Offer.
Except as described above, the Joint Arrangers and Joint
Lead Managers are not otherwise involved in the Offer.
None of the Joint Arrangers, the Joint Lead Managers and
their respective directors, employees, agents and advisers
have independently verified the content of this PDS.
This PDS does not constitute a recommendation by the
Joint Arrangers, any Joint Lead Manager, or any of their
respective directors, officers, employees, agents or advisers
to purchase any Capital Bonds.
Securities
Registrar
Link Market Services
Limited
Maintains the Bond Register.
Solicitors to
Contact
Buddle Findlay Provides legal advice to Contact in respect of the Offer.
Solicitors to
Supervisor
Bell Gully
Provides legal advice to the Supervisor in respect of the
Offer.
Green
Programme Co-
ordinator
Bank of New Zealand
Provides advice and assistance to Contact in relation to its
Green Borrowing Programme Framework
PAGE | 31 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
9. HOW TO COMPLAIN
Complaints about the Capital Bonds can be directed to:
Contact Energy Limited at:
Level 2, Harbour City Tower
29 Brandon Street
Wellington 6143
Phone: +64 4 499 4001
Email: investor.centre@contactenergy.co.nz
If for any reason Contact is unable to resolve your complaint, please contact:
The Supervisor at:
The New Zealand Guardian Trust Company Limited
Level 2, 99 Customhouse Quay
Wellington 6140
Phone: +64 4 901 5402
The Supervisor is a member of an external, independent dispute resolution scheme operated by Financial
Services Complaints Limited (FSCL) and approved by the Ministry of Consumer Affairs. If the Supervisor has
not been able to resolve your issue, you can refer the matter to FSCL by submitting a complaint form on FSCL’s
website (www.fscl.org.nz), emailing complaints@fscl.org.nz, calling FSCL on 0800 347 257, or writing to FSCL
at PO Box 5967, Wellington 6145. The scheme will not charge a fee to any complainant to investigate or resolve
a complaint.
Complaints may also be made to the Financial Markets Authority through their website (www.fma.govt.nz/).
PAGE | 32 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
10. WHERE YOU CAN FIND MORE INFORMATION
Further information relating to Contact and the Capital Bonds is available on the Offer Register. The Offer
Register can be accessed at www.companiesoffice.govt.nz/disclose, offer number OFR13200.
A copy of the information on the Offer Register is available on request to the Registrar of Financial Service
Providers. The information contained on that register includes a copy of the Trust Deed and other material
information.
Contact is subject to a disclosure obligation in relation to its shares and other bonds that require it to notify
certain material information to the NZX and the ASX for the purpose of that information being made available to
participants in the market. You can obtain information, including information made available under the
disclosure obligations referred to above, free of charge on Contact's page on the NZX website at
www.nzx.com/companies/CEN and on the ASX website at www2.asx.com.au/markets/company/cen.
A copy of the Green Borrowing Programme Framework is available on Contact's website at
www.contact.co.nz/aboutus/sustainability/financial-sustainability.
PAGE | 33 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
11. HOW TO APPLY
All of the Capital Bonds offered under the Offer (including any oversubscriptions) have been reserved for
subscription by clients of the Joint Lead Managers, NZX Firms and other approved financial intermediaries
invited to participate in the Bookbuild.
There is no public pool for the Capital Bonds.
This means that you can only apply for Capital Bonds through an NZX Firm or approved financial intermediary
who has obtained an allocation. You can find an NZX Firm by visiting www.nzx.com/services/market-
participants/find-a-participant.
The NZX Firm or financial intermediary will:
• provide you with a copy of this PDS (if you have not already received a copy);
• explain what you need to do to apply for Capital Bonds; and
• explain what payments need to be made by you, and by when.
Your financial adviser will be able to advise you as to what arrangements will need to be put in place for you to
trade the Capital Bonds, including obtaining a Common Shareholder Number (CSN), an Authorisation Code
(FIN) and opening an account with an NZX Firm as well as the costs and timeframes for putting such
arrangements in place.
PAGE | 34 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
12. CONTACT INFORMATION
Issuer
Contact Energy Limited
Level 2, Harbour City Tower
29 Brandon Street
Wellington 6143
+64 4 499 4001
Securities Registrar
Link Market Services Limited
Level 30, PwC Tower
15 Customs Street West
Auckland 1010
+64 9 375 5998
Joint Arrangers and Joint Lead Managers
Craigs Investment Partners Limited
Level 32, Vero Centre
48 Shortland Street
Auckland 1010
0800 226 263
Forsyth Barr Limited
Level 22, NTT Tower
157 Lambton Quay
Wellington 6011
0800 367 227
Joint Lead Manager and Green Programme Co-ordinator
Bank of New Zealand
Level 6, Deloitte Centre
80 Queen Street
Auckland 1010
0800 284 017
Supervisor
The New Zealand Guardian Trust Company Limited
Level 2, 99 Customhouse Quay
Wellington 6011
Phone: +64 4 901 5402
PAGE | 35 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
GLOSSARY
$ or NZ$ New Zealand dollars
Alternative
Redemption Amount
In relation to the Redemption of Capital Bonds, the greater of:
(i) the Redemption Amount; and
(ii) the market price of the Capital Bonds (determined in accordance with the Trust
Deed), which will include accrued interest at the relevant time
ASX
ASX Limited, or the financial market operated by ASX Limited, as the context
requires, also known as the Australian Securities Exchange
Benchmark Rate
5-year mid-market NZD Swap Rate (adjusted to a quarterly equivalent rate as
necessary) calculated by Contact, according to market convention, with reference
to Bloomberg page ‘ICNZ4’ (or any successor page), (rounded to 2 decimal places,
if necessary, with 0.005 being rounded up) determined on the Rate Set Date (in
consultation with the Joint Lead Managers) and at or around 11.00am New
Zealand time on each Reset Date
Bondholder or you
A person whose name is entered in the Bond Register as a holder of a Capital
Bond
Bond Register The register in respect of the Capital Bonds maintained by the Securities Registrar
Bookbuild
The bookbuild process to determine the Margin by reference to bids from market
participants for an allocation of Capital Bonds, expected to be conducted by the
Joint Lead Managers on the Rate Set Date
Business Day
A day (other than a Saturday or Sunday) on which banks are generally open for
business in Auckland and Wellington
If an Interest Payment Date, Redemption Date or the Maturity Date falls on a day
that is not a Business Day, the due date for any payment to be made on that date
will be the next following Business Day
Capital Bonds
The green capital bonds constituted and issued pursuant to the Trust Deed and
offered pursuant to this PDS
CBI Climate Bonds Initiative
Climate Bonds
Standard
The Climate Bonds Standard, currently version 3.0, as amended from time to time
Closing Date 12 November 2021 at 12.00pm
Conditions
The terms and conditions of the Capital Bonds as set out in schedule 1 to the
Supplemental Trust Deed
PAGE | 36 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Distribution Stopper Means, while it applies, that Contact must not:
• make any dividends, distributions or payments of interest on any shares or
securities ranking after the Capital Bonds; or
• acquire, redeem or repay any share or other security ranking after the Capital
Bonds (or provide financial assistance for the acquisition of such shares or
securities),
in each case, without obtaining a Bondholder Special Resolution; or
• make any dividends, distributions or payments of interest on any other
securities ranking pari passu with the Capital Bonds; or
• acquire, redeem or repay any other security ranking pari passu with the Capital
Bonds (or provide financial assistance for the acquisition of such securities),
in each case, other than on a pro rata basis
Election Notice The notice given by Contact to Bondholders to initiate an Election Process
Election Process
The election process described in section 5 of this PDS (Key features of the Capital
Bonds) under the heading 'Election Process'
Event of Default
Each event set out in the corresponding definition in clause 1.2 of the
Supplemental Trust Deed, which are summarised in section 5 of this PDS (Key
features of the Capital Bonds) under the heading 'Events of Default'
First Reset Date The date that is five years after the Issue Date
Green Assets
Renewable power generation assets including hydropower, geothermal, wind and
solar generation assets, and batteries for renewable energy storage that meet the
Green Bond Principles and the Climate Bonds Standard and have been identified
by Contact as meeting the criteria for “Green Assets”, a schedule of such assets is
set out in Appendix 1 of the Green Borrowing Programme Framework
Green Bond Principles
The Green Bond Principles dated June 2021 as published by the International
Capital Market Association, as amended from time to time. A copy of which is
available at
www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-
handbooks/green-bond-principles-gbp/
Green Borrowing
Programme
Framework
The document developed and adopted by Contact and entitled "Contact Energy
Limited Green Borrowing Programme Framework" as may be amended by Contact
from time to time. A copy of the current version is available at
www.contact.co.nz/aboutus/sustainability/financial-sustainability
Green Debt
Instruments
Certain debt instruments including bank facilities, commercial paper, wholesale
bonds, listed retail bonds and US private placement notes issued from time to time
as part of the Green Borrowing Programme, a schedule summarising the latest
position of such instruments is set out in Appendix 2 of the Green Borrowing
Programme Framework
PAGE | 37 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Ineligible Holder In summary, a Bondholder:
• whose address in the register for the Capital Bonds is a place outside New
Zealand; or
• who Contact believes may not be resident in New Zealand,
and where Contact is not satisfied that the laws of the country in which Contact
believes the Bondholder is resident permit participation by the Bondholder in the
Election Process
Inland Revenue The New Zealand Inland Revenue Department
Interest Payment Dates
Unless otherwise determined as part of a Successful Election Process, 19
February, 19 May, 19 August and 19 November (or if that day is not a Business
Day, the next Business Day), until and including the Maturity Date, with the first
Interest Payment Date being 19 February 2022
Interest payments are subject to deferral of interest at Contact's discretion, as
described in section 3 of this PDS (Terms of the Offer) under the heading
'Discretionary deferral of interest'
Interest Rate
The interest rate for the Capital Bonds in place from time to time, as described in
section 3 of this PDS (Terms of the Offer)
Issue Date 19 November 2021
Joint Arrangers Craigs Investment Partners Limited and Forsyth Barr Limited
Joint Lead Managers
Bank of New Zealand, Craigs Investment Partners Limited and Forsyth Barr
Limited
Margin Means:
• during the period prior to the First Reset Date, the initial margin set by Contact
(in consultation with the Joint Lead Managers) following the Bookbuild as
announced by Contact via NZX on the Rate Set Date; or
• during any subsequent period which commences on a Reset Date, the Margin
that applied immediately prior to that Reset Date, unless otherwise determined
as part of a Successful Election Process
Master Trust Deed
The Master Trust Deed dated 23 February 2009 as amended and restated on 21
August 2015, amended on 1 November 2016 and amended on 15 February 2019
between Contact and the Supervisor pursuant to which certain bonds, including the
Capital Bonds, may be issued (as amended or supplemented from time to time), a
copy of which is available on the Offer Register
Maturity Date 19 November 2051
Minimum Holding
In relation to the Capital Bonds, has the same meaning as "Minimum Holding" in
the NZX Listing Rules
PAGE | 38 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Minimum Interest Rate The minimum interest rate announced by Contact on or about the Opening Date
Negative Pledge Deed
The deed of negative pledge and guarantee dated 19 May 2005 provided by
Contact and the Guaranteeing Group Companies (as defined therein).
Bondholders do not have the benefit of this deed
New Conditions
New terms and conditions set out in an Election Notice to apply to the Capital
Bonds from a Reset Date following a Successful Election Process
NZX NZX Limited
NZX Debt Market The debt security market operated by NZX
NZX Firm
Any company, firm, organisation or corporation designated or approved by NZX as
a Primary Market Participant (as defined in the NZX Participant Rules) from time to
time
NZX Main Board The main board equity security market operated by NZX
Offer The offer of Capital Bonds made by Contact under this PDS
Offer Register
The online offer register maintained by the Companies Office and the Registrar of
Financial Service Providers known as "Disclose" and accessible online at
www.companiesoffice.govt.nz/disclose, offer number OFR13200
Opening Date 8 November 2021
PDS This product disclosure statement
Principal Amount $1.00 per Capital Bond
Rate Set Date 12 November 2021
Rating Agency Event Means:
• the receipt by Contact of notice from S&P that, as a result of a change of
criteria, the Capital Bonds will no longer have the same equity content
classification from S&P as it had immediately prior to the change in criteria; or
• Contact ceasing to hold a credit rating
Record Date In relation to:
• any payments due on a Capital Bond, means the date which is 10 calendar
days before the due date for the payment; and
• an Election Process, the date which is two Business Days prior to the date on
which the applicable Election Notice is given,
in either case, if that date is not a Business Day, the Record Date will be the
preceding Business Day
Redemption
The redemption of your Capital Bonds by Contact and Redeem, Redeemed and
Redeeming have corresponding meanings
Redemption Amount
The aggregate of the Principal Amount of the Capital Bonds, any Unpaid Interest
and any accrued but unpaid interest as at the applicable date of Redemption
PAGE | 39 PRODUCT DISCLOSURE STATEMENT - 29 OCTOBER 2021
Repurchase
The purchase of your Capital Bonds either by Contact or procured by Contact if
relevant as part of an Election Process
Repurchase Amount
The aggregate of the Principal Amount of the Capital Bonds, any Unpaid Interest
and any interest scheduled to paid as at the applicable Reset Date
Reset Date
The date occurring five years after the Issue Date and every five years thereafter,
unless otherwise determined as part of a Successful Election Process
Securities Registrar Link Market Services Limited
Special Resolution
Has the meaning given to the term 'Extraordinary Resolution' in the Master Trust
Deed
Step-up Percentage 0.25%
Successful Election
Process
Occurs in relation to an Election Process where Contact determines in its sole
discretion and notifies Bondholders (or is deemed to have notified Bondholders in
accordance with the Trust Deed) that it will Repurchase all Capital Bonds which
Bondholders have elected to sell as part of that Election Process either directly
from the Bondholder or through a resale facility established by Contact
Supervisor
The New Zealand Guardian Trust Company Limited or such other supervisor as
may hold office as supervisor under the Trust Deed from time to time
Supplemental Trust
Deed
The Supplemental Trust Deed dated 29 October 2021 between Contact and the
Supervisor, setting out the terms and conditions of the Capital Bonds (as amended
or supplemented from time to time), a copy of which is available on the Offer
Register
Tax Event
A Tax Event will occur if Contact (having taken appropriate legal or tax advice)
determines that there has been, or there will be, a change in New Zealand law
applying after the Issue Date, as a result of which any interest payable on the
Capital Bonds is not, or will not be, fully deductible for income tax purposes
Trust Deed
The Master Trust Deed, and, where the context requires, includes the
Supplemental Trust Deed
Unpaid Interest
The aggregate of interest payments that Contact defers at its sole discretion, plus
the interest accrued on such deferred interest payments (which will accrue at the
prevailing Interest Rate on the Capital Bonds), compounding on each Interest
Payment Date until paid
---
Offer of unsecured subordinated green Capital Bonds
issued by Contact Energy Limited
29 October 2021
Indicative
Terms
Sheet
1
This indicative terms sheet (Terms Sheet) sets out the key terms of the offer (Offer) by Contact
Energy Limited (Contact) of up to NZ$200 million (with the ability to accept oversubscriptions of up to
an additional NZ$25 million at Contact's discretion) unsecured, subordinated, redeemable, cumulative
interest bearing green capital bonds maturing on 19 November 2051 (Capital Bonds).
This document gives you important information about this investment to help you decide whether you
want to invest and should be read together with the product disclosure statement for the Capital
Bonds (PDS) dated 29 October 2021. There is other useful information about this offer on
www.companiesoffice.govt.nz/disclose, offer number OFR13200.
The PDS is also available at www.contact.co.nz/capitalbondoffer, and can also be obtained from the
Joint Lead Managers, or your usual financial adviser. Investors must obtain, and should read and
carefully consider, a copy of the PDS before they apply for Capital Bonds.
Capitalised terms used but not defined in this Terms Sheet have the meanings given to them in the
PDS.
2
Investors should carefully consider the features of the Capital Bonds which differ from the features of
a standard senior bond. Those features include the ability of Contact to defer interest, optional
redemption rights for Contact, a margin step-up and the subordinated nature of the Capital Bonds.
Investors should read the PDS carefully (including the key risks discussed in section 6 of the PDS)
and seek financial advice before deciding to invest in the Capital Bonds.
Issuer Contact Energy Limited
Description The Capital Bonds are unsecured, subordinated, redeemable, cumulative,
interest bearing debt securities.
The Capital Bonds are Green Debt Instruments under Contact’s Green
Borrowing Programme Framework and are certified by the Climate Bonds
Initiative (CBI) based on the Climate Bonds Standard. A copy of the Green
Borrowing Programme Framework is available on Contact’s website:
www.contact.co.nz/aboutus/sustainability/financial-sustainability.
Ranking The Capital Bonds will be unsecured and will rank equally among themselves
and will be subordinated to all other indebtedness of Contact, other than
indebtedness expressed to rank equally with, or subordinate to, the Capital
Bonds.
Purpose The proceeds from the issue of the Capital Bonds will be used by Contact for
the financing and refinancing of renewable generation and other eligible Green
Assets in accordance with the terms of the Green Borrowing Programme
Framework.
No guarantee Contact is the issuer and the sole obligor in respect of the Capital Bonds. No
other person guarantees the Capital Bonds.
Further
indebtedness
Contact may incur finance debt from time to time without the consent of holders
of Capital Bonds (Bondholders), including finance debt which ranks in priority
to the Capital Bonds.
Equity content S&P Global Ratings has assigned an “intermediate” equity content to the
Capital Bonds. Where such equity credit content is assigned, S&P Global
Ratings will consider that the Capital Bonds comprise 50% equity when
calculating its financial ratios for Contact.
The equity content is expected to fall to minimal (0%) on 19 November 2031.
3
Capital
structure
Contact believes that hybrid securities such as the Capital Bonds that are
ascribed equity content are an effective capital management tool and intends to
maintain such instruments as a key feature of its capital structure going forward.
Credit rating Contact's issuer credit
rating
Expected credit rating
of the Capital Bonds
S&P Global Ratings BBB (Stable) BB+
The expected credit rating of the Capital Bonds is two notches below Contact’s
issuer credit rating of BBB. One notch is deducted for the Capital Bonds being
subordinated and a second notch is deducted because of the potential for
interest payments to be deferred.
A credit rating is an independent opinion of the capability and willingness of an
entity to repay its debts (in other words, its creditworthiness). It is not a
guarantee that the financial product being offered is a safe investment. A credit
rating should be considered alongside all other relevant information making an
investment decision.
A credit rating is not a recommendation by any rating organisation to buy, sell or
hold Capital Bonds. Contact's credit rating provided above is current as at the
date of this Terms Sheet and any rating may be subject to suspension, revision
or withdrawal at any time by the S&P Global Ratings.
Offer Up to NZ$200 million (with the ability to accept oversubscriptions of up to an
additional NZ$25 million at Contact’s discretion).
The Offer is not underwritten.
The Offer will be conducted on a firm allocation basis as described in more
detail below under the heading “Who may apply under the Offer”.
Issue price and
Principal
Amount
NZ$1.00 per Capital Bond.
Interest Rate
from the Issue
Date to the First
Reset Date
The percentage per annum equal to the sum of the Benchmark Rate
(determined on the Rate Set Date) plus the Margin, but subject to the Minimum
Interest Rate.
4
Benchmark Rate 5-year mid-market NZD Swap Rate (adjusted to a quarterly equivalent rate as
necessary) calculated by Contact, according to market convention, with
reference to Bloomberg page ‘ICNZ4’ (or any successor page), (rounded to 2
decimal places, if necessary, with 0.005 being rounded up) determined on the
Rate Set Date (in consultation with the Joint Lead Managers) and at or around
11:00am New Zealand time on each Reset Date.
Margin The Margin for the Capital Bonds for the period prior to the First Reset Date,
(which may be above or below the indicative Margin range) will be set by
Contact (in consultation with the Joint Lead Managers) on the Rate Set Date
following the Bookbuild and will be announced by Contact via NZX on the Rate
Set Date.
During any subsequent period which commences on a Reset Date, the Margin
will be the Margin that applied immediately prior to that Reset Date, unless
otherwise determined as part of a Successful Election Process.
Indicative
Margin range
The indicative Margin range and Minimum Interest Rate will be announced by
Contact via NZX on or about the Opening Date.
Payment of
interest
Interest will be payable on an Interest Payment Date and (if the date on which
Redemption is to occur is not an Interest Payment Date) the date in respect of
which any Capital Bonds are to be Redeemed, to the Bondholder as at 5:00pm
on the relevant Record Date.
Interest
Payment Dates
Interest shall be paid quarterly in arrear in equal payments on 19 February, 19
May, 19 August, 19 November of each year (or if that day is not a Business
Day, the next Business Day). Interest accrues on the Capital Bonds until (but
excluding) the date on which they are Redeemed.
Any interest on Capital Bonds payable on a date which is not an Interest
Payment Date will be calculated on the basis of the number of days elapsed
and a 365-day year, and shall accrue in respect of the period from, and
including, the previous Interest Payment Date until, but excluding, the date for
payment of that interest.
The first Interest Payment Date is 19 February 2022.
Interest may be deferred at the discretion of Contact – see “Discretionary
deferral of interest” below.
5
Record Date In relation to any payments due on a Capital Bond, the date which is 10
calendar days before the due date for the payment.
In relation to an Election Process (as defined below), the date which is two
Business Days prior to the date on which the applicable Election Notice is given.
In either case, if that date is not a Business Day, the Record Date will be the
preceding Business Day.
Reset Dates The First Reset Date for the Capital Bonds is the date that is five years after the
Issue Date (19 November 2026). Thereafter, there is a further Reset Date every
five years. As part of a Successful Election Process, a different Reset Date may
be adopted.
Interest Rate
after each Reset
Date
If not Redeemed prior, the Interest Rate applying from each Reset Date up to
but excluding the next Reset Date will be the fixed rate of interest expressed as
a percentage per annum equal to the then Benchmark Rate on that Reset Date
plus the Margin plus the Step-up Percentage.
If a Successful Election Process has been completed, the Interest Rate after
each Reset Date will be as set out in the relevant Election Notice (as defined
below).
Step-up
Percentage
0.25%.
Discretionary
deferral of
interest
Contact may defer payment of interest on the Capital Bonds at any time for up
to five years at its sole discretion by notifying Bondholders. Where an interest
payment has not been paid on its due date, notice of its deferral shall be
deemed to have been given.
If Contact defers the payment of interest, the interest payable will itself accrue
interest at the prevailing Interest Rate until the Interest Payment Date on which
all Unpaid Interest is paid.
See section 3 of the PDS (Terms of the Offer) for more information.
Distribution
Stopper
Whilst there is any Unpaid Interest outstanding Contact shall not:
(i) make any dividends, distributions or payments of interest on any shares
or securities ranking after the Capital Bonds; or
(ii) acquire, redeem or repay any share or other security ranking after the
Capital Bonds (or provide financial assistance for the acquisition of such
shares or securities),
6
in each case, without obtaining a Bondholder Special Resolution; or
(iii) make any dividends, distributions or payments of interest on any other
securities ranking pari passu with the Capital Bonds; or
(iv) acquire, redeem or repay any other security ranking pari passu with the
Capital Bonds (or provide financial assistance for the acquisition of such
securities),
in each case, other than on a pro-rata basis.
See section 3 of the PDS (Terms of the Offer) for more information.
Election
Process
No earlier than six months and not later than 30 Business Days before any
Reset Date, Contact may give to each Bondholder a notice (Election Notice)
specifying new terms and conditions (New Conditions) (including for example a
new Margin) proposed to apply from the next Reset Date. Bondholders may
elect to accept or reject the New Conditions in respect of some or all of their
Capital Bonds. Bondholders who do not respond will be deemed to have
accepted the New Conditions.
If Contact declares a Successful Election Process then it is obliged to
Repurchase any Capital Bonds held by a Bondholder who has rejected the New
Conditions for the Repurchase Amount. Contact may choose to establish a
resale facility to seek buyers for those Capital Bonds.
If Contact does not wish to Repurchase all Capital Bonds from those
Bondholders that have rejected the New Conditions then Contact must declare
that the Election Process has failed, in which case the existing terms and
conditions will continue to apply and all Capital Bonds will remain outstanding.
See section 5 of the PDS (Key features of the Capital Bonds) for more
information.
Optional early
Redemption by
Contact
Contact may, by giving Bondholders prior written notice, Redeem some or all of
the Capital Bonds on:
(i) any Reset Date; or
(ii) any Interest Payment Date after a Reset Date if a Successful Election
Process has not been undertaken in respect of that Reset Date,
provided that after any partial Redemption, there will still be at least
100,000,000 Capital Bonds outstanding. Any partial Redemption will be done
on a proportionate basis and may include adjustments to take account of the
effect on marketable parcels and other logistical considerations.
7
Contact may Redeem all (but not some only) of the Capital Bonds if:
(iii) there are less than 100,000,000 Capital Bonds on issue;
(iv) a Tax Event (as defined below) occurs; or
(v) a Rating Agency Event (as defined below) occurs.
If the Redemption occurs pursuant to paragraph (i), (iii) or (iv), the amount
payable will be the aggregate of the Principal Amount of the Capital Bonds plus
any Unpaid Interest plus any interest scheduled to be paid on the date of
Redemption (Redemption Amount).
If the Redemption occurs pursuant to paragraph (ii) or (v), the amount payable
will be the greater of:
(1) the Redemption Amount; and
(2) the market price of the Capital Bonds (determined in accordance
with the Trust Deed), which will include accrued interest at the
relevant time.
See section 3 of the PDS (Terms of the Offer) for more information
Tax Event A Tax Event will occur if Contact (having taken appropriate legal or tax advice)
determines that there has been, or there will be, a change in New Zealand law
applying after the Issue Date, as a result of which any interest payable on the
Capital Bonds is not, or will not be, fully deductible for income tax purposes.
Rating Agency
Event
A Rating Agency Event means:
(i) the receipt by Contact of notice from S&P Global Ratings that, as a
result of a change of criteria, the Capital Bonds will no longer have the
same equity content classification from S&P Global Ratings as it had
immediately prior to the change in criteria; or
(ii) Contact ceasing to hold a credit rating.
Events of
Default
The Events of Default are contained in the Supplemental Trust Deed. They
include:
(i) a failure by Contact to make a payment, including of principal or interest
(to the extent payment of interest has not been, or is not capable of
being deferred) due in respect of the Capital Bonds), including on
Redemption when due (subject to applicable grace periods);
(ii) a failure by Contact to comply with the Distribution Stopper (when it is
applicable); or
(iii) an insolvency event of Contact occurs.
8
This summary does not cover all of the Events of Default. For full details of the
Events of Default see the corresponding definition in clause 1.2 of the
Supplemental Trust Deed.
No Event of
Default
Failure by Contact to:
(i) allocate the proceeds of the Capital Bonds as described in the PDS or
the Green Borrowing Programme Framework;
(ii) meet the Climate Bonds Standard, Green Bond Principles or the Green
Borrowing Programme Framework in respect of the Capital Bonds;
(iii) maintain CBI certification of the Capital Bonds or other Green Debt
Instruments;
(iv) comply with any environmental laws and standards in respect of the
Green Assets or otherwise;
(v) receive further assurance from CBI;
(vi) comply with the Green Borrowing Programme Framework (including
updating its website in respect of the Capital Bonds);
(vii) notify Bondholders that the Capital Bonds cease to comply with the
Green Borrowing Programme Framework, the Green Bond Principles or
Climate Bonds Standard; or
(viii) in any other way ensure that the Capital Bonds retain their green
attributes,
is not an Event of Default or other breach in relation to the Capital Bonds and
does not give Bondholders or Contact any right to require the Capital Bonds to
be repaid early. Contact may, depending on the exact circumstances, provide
the market with an update in relation to the ongoing status of the Capital Bonds
as green capital bonds.
Ranking on
liquidation
On a liquidation of Contact, the Capital Bonds will rank:
(i) behind Contact’s bank debt, senior bonds, US private placement notes,
commercial paper, unsubordinated general and trade creditors,
indebtedness preferred by law and secured indebtedness;
(ii) equally with other Bondholders and all other unsecured, subordinated
obligations of Contact; and
(iii) in priority to holders of ordinary shares of Contact and holders of
securities and other financial products and financial indebtedness that
rank after the Capital Bonds.
Minimum
Application
NZ$5,000 with multiples of NZ$1,000 thereafter.
9
Amount and
Minimum
Holding
Transfer
restrictions
As a Bondholder, you may only transfer Capital Bonds if the transfer is in
respect of Capital Bonds having an aggregate Principal Amount that is an
integral multiple of NZ$1,000. However, Contact will not register any transfer of
Capital Bonds if the transfer would result in the transferor or the transferee
holding or continuing to hold Capital Bonds with an aggregate Principal Amount
of less than NZ$5,000, unless the transferor would then hold no Capital Bonds.
NZX Debt
Market
quotation
An application has been made to NZX for permission to quote the Capital
Bonds on the NZX Debt Market and all of the requirements of NZX relating
thereto that can be complied with on or before the distribution of this Terms
Sheet have been duly complied with. However, the Capital Bonds have not yet
been approved for trading and NZX accepts no responsibility for any statement
in this Terms Sheet or the PDS.
NZX is a licensed market operator, and the NZX Debt Market is a licensed
market under the FMCA.
NZX Debt Market ticker code CEN060 has been reserved for the Capital Bonds.
Expected date
of initial
quotation and
trading on the
NZX Debt
Market
Monday, 22 November 2021.
ISIN NZCEND0060L9.
Business Day A day (other than a Saturday or Sunday) on which banks are generally open for
business in Auckland and Wellington.
If an Interest Payment Date, Redemption Date or the Maturity Date falls on a
day that is not a Business Day, the due date for any payment to be made on
that date will be the next following Business Day.
Governing Law New Zealand.
10
Who may apply
under the Offer
All of the Capital Bonds offered under the Offer (including any
oversubscriptions) have been reserved for subscription by clients of the Joint
Lead Managers, NZX Firms and other approved financial intermediaries invited
to participate in the Bookbuild. There will be no public pool.
Securities
Registrar
Link Market Services Limited.
Supervisor The New Zealand Guardian Trust Company Limited.
Joint Arrangers Craigs Investment Partners Limited and Forsyth Barr Limited.
Joint Lead
Managers
Bank of New Zealand, Craigs Investment Partners Limited and Forsyth Barr
Limited.
Green
Programme Co-
ordinator
Bank of New Zealand.
Fees Taxes may be deducted from interest payments on the Capital Bonds.
You are not required to pay brokerage or any other fees or charges to Contact
to purchase the Capital Bonds. However, you may have to pay brokerage to
the firm from whom you receive an allocation of Capital Bonds or for the transfer
of Capital Bonds.
Contact will pay brokerage of 0.50% on Capital Bonds allotted to retail clients
plus firm fees of 0.50% on firm allocations.
Selling
restrictions
This Offer is only made in New Zealand.
You may only offer for sale or sell any Capital Bonds in conformity with all
applicable laws and regulations in any jurisdiction in which it is offered, sold or
delivered.
Contact has not taken and will not take any action which would permit a public
offering of Capital Bonds, or possession or distribution of any offering material in
respect of the Capital Bonds, in any country or jurisdiction where action for that
purpose is required (other than New Zealand).
Any information memorandum, disclosure statement, circular, advertisement or
other offering material in respect of the Capital Bonds may only be published,
delivered or distributed in compliance with all applicable laws and regulations
11
(including those of the country or jurisdiction in which the material is published,
delivered or distributed).
By subscribing for or otherwise acquiring any Capital Bonds, you agree to
indemnify, among others, Contact, the Supervisor, the Joint Arrangers, the Joint
Lead Managers and the Green Programme Co-ordinator for any loss suffered
as a result of any breach by you of the selling restrictions referred to in this
Term Sheet or the PDS.
Non-reliance This Terms Sheet does not constitute a recommendation by the Joint Arrangers,
the Joint Lead Managers, the Green Programme Co-ordinator, the Supervisor
or any of their respective directors, officers, employees, agents or advisers to
subscribe for, or purchase, any of the Capital Bonds. None of these parties or
any of their respective directors, officers, employees, agents or advisers accept
any liability whatsoever for any loss arising from this Terms Sheet or its
contents or otherwise arising in connection with the Offer.
The Joint Arrangers, the Joint Lead Managers, the Green Programme Co-
ordinator and the Supervisor have not independently verified the information
contained in this Terms Sheet. In accepting delivery of this Terms Sheet, you
acknowledge that none of the Joint Arrangers, the Joint Lead Managers, the
Green Programme Co-ordinator, the Supervisor nor their respective directors,
officers, employees, agents or advisers gives any warranty or representation of
accuracy or reliability and they take no responsibility for it. They have no liability
for any errors or omissions (including for negligence) in this Terms Sheet, and
you waive all claims in that regard.
Green
Borrowing
Programme
Assurance
Contact has received a pre-issuance certification from CBI in respect of the
Capital Bonds.
Contact has engaged KPMG to provide independent assurance of the Green
Borrowing Programme to confirm that the Green Borrowing Programme
continues to meet the requirements of the Climate Bonds Standard and the
Green Bond Principles. Contact will seek to obtain further assurance at least
annually.
Copies of the CBI certification and the latest KPMG independent limited
assurance report (which details the assurance procedures and standards
followed) can be found here: www.contact.co.nz/aboutus/sustainability/financial-
sustainability.
12
Documentation
The terms of the Offer are set out in the PDS.
Other terms of the Capital Bonds are set out in:
• the Trust Deed; and
• the Supplemental Trust Deed.
You should read each of these documents. Copies may be obtained from the
Offer Register at www.companiesoffice.govt.nz/disclose, offer number
OFR13200. Copies are also available at www.contact.co.nz/capitalbondoffer.
KEY DATES
PDS lodged Friday, 29 October 2021
Opening Date Monday, 8 November 2021
Closing Date Friday, 12 November 2021 at 12:00pm
Rate Set Date Friday, 12 November 2021
Issue Date Friday, 19 November 2021
First Reset Date 19 November 2026
Maturity Date 19 November 2051
The dates set out in this Terms Sheet are indicative only and Contact, in conjunction with the Joint Lead
Managers, may change the dates set out in this Terms Sheet. Contact has the right in its absolute
discretion and without notice to close the Offer early, to extend the Closing Date or to choose not to
proceed with the Offer. If the Closing Date is changed, subsequent dates may be changed accordingly.
OTHER INFORMATION
Any internet site addresses provided in this Terms Sheet are for reference only and, except as expressly
stated otherwise, the content of any such internet site is not incorporated by reference into, and does
not form part of, this Terms Sheet.
Investors should seek qualified independent financial and taxation advice before deciding to invest. In
particular, you should consult your tax adviser in relation to your specific circumstances. Investors will
also be personally responsible for ensuring compliance with relevant laws and regulations applicable
to them (including any required registrations).
For further information regarding Contact, visit www.nzx.com/companies/CEN.
13
CONTACT DETAILS
Issuer
Contact Energy Limited
Level 2, Harbour City Tower
29 Brandon Street
Wellington 6143
Joint Arranger and Joint Lead Manager
Forsyth Barr Limited
Level 22, NTT Tower
157 Lambton Quay
Wellington 6011
0800 367 227
Joint Arranger and Joint Lead Manager
Craigs Investment Partners Limited
Level 32, Vero Centre
48 Shortland Street
Auckland 1010
0800 226 263
Joint Lead Manager and Green Programme Co-ordinator
Bank of New Zealand
Level 6, Deloitte Centre
80 Queen Street
Auckland 1010
0800 284 017
Supervisor
The New Zealand Guardian Trust Company Limited
Level 2, 99 Customhouse Quay
Wellington 6011
Securities Registrar
Link Market Services Limited
Level 30, PWC Tower
15 Customs Street West
Auckland 1010
Legal advisers to Contact
Buddle Findlay
Level 18, HSBC Tower
188 Quay Street
Auckland 1010
14
CBI DISCLAIMER
The certification of the Capital Bonds by the Climate Bonds Initiative is based solely on the Climate
Bonds Standard and does not, and is not intended to, make any representation or give any assurance
with respect to any other matter relating to the Capital Bonds, the Green Borrowing Programme
Framework, any other Green Debt Instrument or Green Asset, including but not limited to this Terms
Sheet, the PDS, the Trust Documents, any transaction documents, Contact or the management of
Contact.
The certification of the Capital Bonds by the Climate Bonds Initiative was addressed solely to the
board of directors of Contact and is not a recommendation to any person to purchase, hold or sell the
Capital Bonds (or any other Green Debt Instruments in the Green Borrowing Programme Framework)
and such certification does not address the market price or suitability of the Capital Bonds or the
Green Borrowing Programme Framework for a particular investor. The certification also does not
address the merits of the decision by Contact or any third party to participate in the Capital Bonds,
any other Green Debt Instruments or any Green Asset and does not express and should not be
deemed to be an expression of an opinion as to Contact or any aspect of the Capital Bonds, any other
Green Debt Instruments or any Green Asset (including but not limited to the financial viability of the
Capital Bonds, any other Green Debt Instruments or any Green Asset) other than with respect to
conformance with the Climate Bonds Standard.
In issuing or monitoring, as applicable, the certification, the Climate Bonds Initiative has assumed and
relied upon and will assume and rely upon the accuracy and completeness in all material respects of
the information supplied or otherwise made available to the Climate Bonds Initiative.
The Climate Bonds Initiative does not assume or accept any responsibility to any person for
independently verifying (and it has not verified) such information or to undertake (and it has not
undertaken) any independent evaluation of any Green Debt Instruments, Green Asset or Contact. In
addition, the Climate Bonds Initiative does not assume any obligation to conduct (and it has not
conducted) any physical inspection of any Green Debt Instruments or Green Asset. The certification
may only be used with the Capital Bonds and may not be used for any other purpose without the
Climate Bonds Initiative’s prior written consent.
The certification does not and is not in any way intended to address the likelihood of timely payment
of interest when due on the Capital Bonds (or any other Green Debt Instruments in the Green
Borrowing Programme Framework and/or the payment of principal at maturity or any other date).
The certification may be withdrawn at any time in the Climate Bonds Initiative’s sole and absolute
discretion and there can be no assurance that such certification will not be withdrawn.
---
11
Investor presentation
29 October 2021
Capital Bond Offer
2
This presentation has been prepared by Contact Energy Limited (Issuer) in relation to the
offer of unsecured, subordinated green capital bonds (Capital Bonds) (Offer). The Offer is
a simplified disclosure offer made in accordance with clause 49G of the Financial Markets
Conduct Regulations 2014 on the basis that the Capital Bonds rank in priority to ordinary
shares in the Issuer, which are quoted on the NZX Main Board and the ASX.
A simplified disclosure product disclosure statement (PDS) has been prepared in respect
of the Offer and is available, along with other information relating to the Capital Bonds, at
www.companies.govt/disclose (OFR13200).
Contact is also subject to a disclosure obligation that requires it to notify certain material
information to NZX Limited (NZX) for the purposes of that information being made
available to participants in the market and that information can be found at
www.nzx.com/companies/CEN.
Capitalisedterms used in this presentation but not defined have the meaning given to
them in the PDS.
To the extent permitted by law, none of the Issuer, the Joint Arrangers, the Joint Lead
Managers, the Supervisor, nor any of their respective directors, officers, employees,
affiliates or agents (a) accept any responsibility or liability whatsoever for any loss arising
from this presentation or its contents, or otherwise arising in connection with the Offer or
any person’s investment in these Capital Bonds, (b) other than the Issuer, authorisedor
caused the issue of, or made any statement in, any part of this presentation, (c) make any
representation, recommendation or warranty, express or implied, regarding the origin,
validity, accuracy, reasonableness or completeness of, or any errors or omissions in, any
information, statement or opinion contained in this presentation, or (d) accept any
responsibility or obligation in relation to any matter arising or coming to their attention after
the date of this presentation which may affect any matter referred to in this presentation.
This presentation contains certain 'forward-looking statements' such as indication of, and
guidance on, future earnings and financial position and performance. Such projections
and forward-looking statements are not guarantees or predictions of future performance
and involve known and unknown risks and uncertainties and other factors, many of which
are beyond the control of the Issuer and may involve significant elements of subjective
judgement and assumptions as to future events which may or may not be correct.
Past performance information provided in this presentation is not indicative of future
performance and no guarantee of future returns is implied or given.
Investments in the Capital Bonds are an investment in the Issuer and may be affected by
the on-going performance, financial position and solvency of the Issuer.
This presentation is for preliminary information purposes only and is not an offer to sell or
the solicitation of an offer to purchase or subscribe for the Capital Bonds and no part of it
shall form the basis of or be relied upon in connection with any contract or commitment
whatsoever. The distribution of this presentation, and the offer or sale of Capital Bonds,
outside New Zealand may be restricted by law. Persons who receive this presentation
outside New Zealand must seek advice and observe all such restrictions. Nothing in this
presentation is to be construed as authorisingits distribution, or the offer or sale of Capital
Bonds, in any jurisdiction other than New Zealand and the Issuer does not accept any
liability in that regard.
The information in this presentation is given in good faith and has been obtained from
sources believed to be reliable and accurate at the date of preparation, but its accuracy,
correctness and completeness cannot be guaranteed.
Application has been made to NZX for permission to quote the Capital Bonds on the NZX
Debt Market and all the requirements of NZX relating thereto that can be complied with on
or before the date of distribution of the PDS have been duly complied with. However, NZX
accepts no responsibility for any statement in this presentation. NZX is a licensed market
operator, and the NZX Debt Market is a licensed market under the FMCA.
Disclaimer and important information
33
Dorian Devers
Chief Financial Officer
Contact
presenters
Will Thomson
Corporate Treasurer
44
Agenda
Electricity market overview
Contact Energy strategy
Business performance update
Funding
Capital Bonds & the Offer
5-9
10
11-13
14-17
18-24
55
Presented by
Dorian Devers
Chief Financial Officer
Electricity market overview
Contact Energy strategy
Business performance update
Introduction to Contact
66
“New Zealand serves as a model for effective energy
markets and secure power system operation.”
International Energy Agency (IEA) New Zealand Review
New Zealand enjoys a reliable, affordable and
environmentally sustainable electricity system
What does your power bill pay for?
5
Major
generators
1
State-owned national
transmission grid operator
29
Distribution
businesses
15*
Retailers
2.1m
Regulated monopolies
CompetitiveCompetitive
Spot
electricity
pool
*Source: Retail brands with more than 500 ICPs. EMI as at 20 September 2021
Households
Source: EA website: https://www.ea.govt.nz/consumers/my-electricity-bill/
77
Contact’s diverse generation portfolio allows for generation when hydro storage levels are low to continuously meets customer
demand
The five largest electricity companies are
vertically integrated and publicly listed
Generation market share by volumeRetail electricity market share by customer connections (ICPs)
Source: EMI –Electricity Authority (FY21)
Source: EMI –Electricity Authority
This will vary
based on hydrology
in a given year
Contact has
a diverse generation
portfolio
Meridian supplies the
Tiwai smelter (~5TWh
p.a.), contracted until
December 2024
Mercury have agreed to
the conditional purchase
of the Trustpowerretail
business. Completion is
expected in early 2022,
subject to all conditions
being met
22%
19%
16%
15%
12%
5%
Genesis
Mercury
Contact
Todd
Meridian
Other
Trustpower
11%
20%
20%
30%
16%
3%
Meridian
Genesis
Mercury
Contact
9%
Trustpower*
1%
Todd
Other
*Trustpower only generation. Trustpower also purchases energy under long-term contracts
from other market participants
88
Contact has led the way in decarbonising the NZ electricity system through geothermal development
NZ electricity supply is highly renewable
Electricity generation carbon emissions (units of CO2e)
Source: MBIE
202020052010
Coal
2015
Gas
-47%
21
1
56
Hydro
Wind
7
13
Geothermal
Coal
Gas
2
Other
2005
2020
Electricity generation mix comparison 2005 and 2020
0.60.6
0.5
0.7
1.9
1.8
2.0
1.9
5.6
7.6
6.8
5.8
3.5
0.5
0.9
2.5
JunSepDecMar
10.5
Mean hydro inflows*
Geothermal**
Wind**
11.6
10.2
10.9
Flexible thermal
production is required
to complement
5TWh
of seasonal
renewables
firming
per annum
Current national quarterly supply and demand (TWh)
Thermal and
hydro storage
Must-run
renewable
generation
Quarter ending
5
56
18
Hydro
5
Geothermal
14
Wind
Coal
Gas
2
Other
Geothermal
and wind have
displaced
fossil fuels
*Source: NZX hydro, mean inflows1926 –2021
** Source: MBIE quarterly electricity generation and consumption 2015 to 2021
Source: MBIE
Measured at the station grid entry point
3TWh
per annum
99
Contact Energy is one of
New Zealand’s most significant companies
All figures at 30 June 2021 or for FY21 year
*Includes 543 bondholders for CEN030 which matures on
15th November 2021.
It is an owner and operator of low-cost, long-life renewable
generation assets and is developing its consented
geothermal development options
81%
renewable
generation
5
geothermal
stations
2
hydro
stations
1
controlled
storage lake
4
thermal
peaking
stations
8.4TWh
FY21
generation
Long term
contract for gas storage
1,069
Bondholders*
63k
shareholders
532k
customer
connections
979
employees
123
community
initiatives
supported
1010
Our strategy to lead NZ’s decarbonisation
Enablers
Transformative ways of working:
create a flexible and high-performing
environment for NZ's top talent
Outcomes
Growth
Pivot our business to a new growth era that
captures the value unlocked by decarbonisation
Resilience
Deliver sustainable shareholder returns,
aligned with our ESG commitment
Performance
Realise a step-change in performance, materially
growing EBITDAF through strategic investments
Strategic
theme
Objective
Grow
demand
Attract new industrial
demand with globally
competitive renewables
Grow renewable
development
Build renewable generation
and flexibility on the back of
new demand
Decarbonise
our portfolio
Lead an orderly
transition to
renewables
Create outstanding
customer experiences
Create NZ's leading sustainable
energy brand that will support
renewable development ambitions
Operational excellence:
continuously improving our operations
through innovation and digitisation
ESG: create long-term value through our
strong performance across a broad set of
environmental, social and governance factors
1111
Contact has delivered stable
EBITDAF over the past four years
EBITDAF, $m, continuing operations rolling 12 months average
449
459
465
468
497
509509
510
510
506
499
497
504
502
492
479
450
445
448
446
446
451
449
454
451
457
466
487
491
480
476
485
492
496
513
528
553
Jul-19Sep-19Sep-18Jul-18Nov-20Nov-18Jan-19Mar-19May-21May-19Jan-21Nov-19Jan-20Mar-20
Mar-21
May-20Jul-20Sep-20
Ø 489
FY18
FY19
FY20
FY21
despite volatile wholesale markets and rising thermal fuel costs
1212
Operating Cash Flow less Investing Cash Flow ($m)
Key financial metrics
Capital Employed ($m) & S&P Net Debt to EBITDAF
•Capital and operational efficiency have supported strong operating cash flows
421
379
401
341
432
390
-51
-61
-116
-78
-60
-55
-116
341
9
FY21
301
FY20
-2
305
720
-4
FY17
-11
6
FY18FY19
235
290
371
312
303
255
Proceeds from sale of assets/operations (net of tax)
Operating Free Cash FlowOperating cash flow
SIB Capex (cash)
Growth capex & investment
SIB = stay in business
Contact continues to target an investment grade credit rating
•Provides Contact with benefits in terms of access to multiple funding markets
and efficient borrowing costs
•Most recently reaffirmed by S&P in March 2021
•S&P’s key financial metrics for BBB is a Net Debt/EBITDAF ratio targeting
below 2.8x over the medium-term
2,778
2,727
2,782
2,621
2,927
1,543
1,482
1,049
1,154
706
3.0
2.8
2.3
1.9
1.7
FY18FY17FY21FY19FY20
3,775
4,209
4,321
3,831
3,633
Smoothed S&PNet DebtEquity
13
z
700
580
30
50
60
$1,420m
Medium-term capital investment programme*
Investments will be sized to meet the market
Growth investment funding strategy
Complementing conventional debt funding and hybrid debt instruments, Contact has already accessed equity
funding to support our medium term investment programme
Hydro refurbishment
Geofutures
Decarbonisation spend
Tauhara (committed)
Battery
Potential sources of funding
235
400
244
291
250
Debt capacity pre-equity
Balance
Equity raise
Hybrid credits
Capacity through
EBITDAF growth (FY24)
$1,420m
Balance includes dividend reinvestment plan take-up, which can be increased to support upside
demand growth, and retained operating free cash flow in excess of the ordinary dividend
Commitment to maintaining S&P investment grade credit rating continued
Long-life renewable
generation assets are
capital intensive and
require equity support
The timing of
Geofutures** investment
decision provides
balance sheet flexibility
* Except for Tauhara, the remaining projects are uncommitted. The eventual
capital spend may vary from the indicative capital investment programme
outlined as market conditions change.
** Geofuturesis the name of the project to replace and/or expand generation at Wairakei post current consent expiry in 2026
1414
Funding
Presented by
Will Thomson
Corporate Treasurer
Funding
1515
Balance sheet and funding portfolio
Balanced debt portfolio with diverse
sources of funding; comprising bank
debt, domestic bonds and USPP
All bank facilities have been
converted to sustainability linked
loans, and all debt is certified green
The average debt maturity profile
(inclusive of the new issuance) is
7.6 years as at 31 October 2021
Bond proceeds will be used to
effectively fund the repayment of the
maturing $150m domestic green
retail bonds and fund geothermal
development
0
50
100
150
200
250
300
350
400
$m
FY22FY27FY23FY25FY24FY26FY28FY29FY52
Capital BondBank Facilities
Domestic BondsNexi
USPP
Funding maturity profile (at 30 June 2021, including new capital bonds)
29%
4%
31%
36%
Nexi
Domestic BondsUSPP
Bank Facilities
Sources of funding
(at 30 June 2021)
•The Capital Bonds have been assigned intermediate equity content, providing equity content with S&P for rating purposes
•This will provide balance sheet support going forward as Contact continues to fund its $1.4bn capital investment plan
1616
In August 2017, Contact obtained green certification from
the Climate Bonds Initiative for all debt in the funding
portfolio –the “Green Borrowing Programme”
Green Borrowing Programme
The proceeds of the Green Borrowing Programmeare used to finance existing
and future renewable generation assets that meet the Green Bond Principles
and the Climate Bonds Standard (Green Assets). All of Contact’s geothermal
assets (excluding Ohaaki) qualify to be included as eligible Green Assets
CBI has recently released its final hydropower criteria. Contact is currently
seeking to obtain green certification on its hydropower assets
Through certification, the Green Borrowing Programmemeans Contact’s
funding portfolio reflects the low carbon nature of the company’s renewable
generation assets and aligns with our focus on decarbonisation
The new 2021 Capital Bond will be a certified green bond
It will be the first green capital bond in New Zealand
The Green Borrowing Programmehas been independently verified by KPMG.
As at 30 June 2021, the emissions intensity (of the Green Assets) was
30gCO2/kWh, well below the 100gCO2/kWh required under the standard, and
the Green Ratio (Eligible Green Assets/Green Debt Instruments) was 1.45
times
Further information about the Green Borrowing Programmeand the Green
Borrowing ProgrammeFramework is available on the Issuer's website:
www.contact.co.nz/aboutus/sustainability/financial-sustainability
Note that lack of compliance with the Green Borrowing ProgrammeFramework
or the CBI standards is not an event of default in relation to the Capital Bonds
1717
Green Borrowing Programme
1818
Capital Bonds
and the Offer
1919
DescriptionSubordinated, unsecured, redeemable, interest bearing debt securities of Contact
IssuerContact Energy Limited
GuarantorsNone
Ranking
The Capital Bonds rank behind bankdebt, senior bonds, US private placement notes, commercial paper and any amounts owing to unsubordinated
general and trade creditors, as well as indebtedness preferred by law and secured indebtedness
The Capital Bonds rank equally and without preference among themselves and equally with any other subordinated, unsecured indebtedness
Credit ratings (S&P)
Expected Issue Credit Rating –BB+
The expected Issue Credit Rating is two notches below Contact's issuer credit rating of BBB
•One notch for subordination and one notch for the potential deferral of interest
Issue amountUp to $200m with the ability to accept oversubscriptions of up to an additional $25m at Contact's discretion
Tenor30 years, maturing 19 November 2051
First Reset Date19 November 2026
Optional early Redemption
by Contact
First Reset Date and each subsequent Interest Payment Date and certain other limited circumstances (following a Tax Event or Rating Agency Event)
Reset DatesThe First Reset Date for the Capital Bonds is the date that is five years after the Issue Date. Thereafter there is a furtherReset Date every fiveyears
Interest Rate
The Interest Rate and Margin for the first five-year period will be set followingabookbuild on 12November2021
If not Redeemed earlier, on each Reset Date,unless there has been a Successful Election Process,the Interest Rate for the next five-year period will
reset to the five-year swap rate on the applicable Reset Date plus the Margin plus the Step-up Percentage (0.25%)
Deferral of interest
Payment of interest can be deferred (for no more than five years) at Contact's discretion (and must be deferred if Contact is insolvent)
Deferred interest is cumulative
Quotation*It is expected the Capital Bonds will be quoted under the ticker code CEN060 on the NZX Debt Market
Key terms of the Capital Bonds
* Application has been made to NZX for permission to quote the Capital Bonds on the NZX Debt Market and all the requirements of NZX relating thereto have been complied with. However, NZX accepts no responsibility for any statement in
this presentation. NZX is a licensed market operator, and the NZX Debt Market is a licensed market under the FMCA.
2020
The Margin and the Interest Rate for the period until the First Reset Date (19
November 2026) is to be set by Bookbuild
Before each Reset Date, Contact may propose, through an Election Process,
new terms and conditions (including a new Interest Rate and Margin) that
wouldapply to the Capital Bonds from that Reset Date
If no Successful Election Process occurs, the Interest Rate for the next five-
year period resets to the sum of the Benchmark Rate on that Reset Date plus
the Margin plus the Step-up Percentage of 0.25%
Interest payments
An interest payment may be deferred at Contact's sole discretion for up to
five years
If deferred, an interest payment amount will itself accrue interest at the
prevailing Interest Rate on the Capital Bonds (in aggregate, the Unpaid
Interest)
If there is any Unpaid Interest outstanding, Contact shall not:
•make any distributions on, redeem or repay, any of its shares or other
securities ranking behind the Capital Bonds
•make any distributions on, or redeem or repay, any securities ranking
paripassu with the Capital Bonds (other than on a pro-rata basis)
Interest deferralInterest Rate
2121
Contactmust Redeem Capital Bonds on the
Maturity Date or if an Event of Default occurs
Contact has a right to Redeem:
a)all or part of the Capital Bonds on any Reset Date; or
b)all or some of the Capital Bonds on any Interest Payment
Date after a Reset Date if a Successful Election Process has
not been undertaken (iethe Step-up Percentage applies); or
c)all of the Capital Bonds if a Tax Event
(1)
occurs; or
d)all ofthe Capital Bonds if a Rating Agency Event
(2)
occurs
Issuer redemption rights
The redemption price will be:
If Redemption is on the Maturity Date, on a Reset Date or due to theoccurrenceof a Tax Event:
•the Principal Amount plus Unpaid Interest plus accrued interest;
otherwise, the higher of:
a)the Principal Amount plus Unpaid Interest plus accrued interest; and
b)the market price, which will include accrued interest
A partial redemption will bepermitted only to the extent there will be at least 100m Capital Bonds
outstanding after the partial redemption
Note that Standard & Poor's may reduce the equity content to "minimal" if Contact, without issuing
a replacement security, redeems more than 10% of the Capital Bonds in any 12-month period or
more than 25% of the Capital Bonds in any 10-year period
1)A Tax Event is where a change of law or regulation occurs and interest payable on the Capital Bonds is no longer tax deductible
2)A Rating Agency Event occurs where Standard & Poor’s changes its criteria and the Capital Bonds no longer qualify for Intermediate Equity Contentor if Contact
ceases to have a credit rating
2222
Key early redemption drivers
Contact can Redeem the Capital Bonds or run an Election Process
•If the Election Process is unsuccessful the effective Margin will increase by
the Step-up Percentage (0.25%)
•Capital Bonds are callableat par whereas any subsequent issuer call
betweenReset Dates will be at the higher of par and market value(unless it
is due tothe occurrence of aTax Event)
•If the Capital Bonds are not calledat year five then at year ten there is a
refinancing requirement at the same time as there is a loss of equity content
•Equity content falls to minimal, Standard & Poor’s treats the Capital
Bonds as 100% debt in Contact's financial ratios
•Likely to be high-cost debt with limited benefits
•These outcomes not consistent with the rationale for the issue
Year 10Year five
20262031
•Notwithstanding these early redemption drivers Contact considers that hybrid securities that are ascribed
equity content, such as the Capital Bonds, will be a key feature of its capital structure going forward
•As such if Contact chooses to redeem the Capital Bonds early, current expectation is that equivalent
replacement securities would be issued to fund that redemption
2323
The Election Process
Bondholders who accepted
the New Conditions
New Conditions will apply
to their Capital Bonds
Bondholders who rejected
the New Conditions
Contact Repurchases their Capital
Bonds
Bondholders who did nothing
are deemed to have accepted
the New Conditions
New Conditions will applyto
their Capital Bonds
Election Notice is revoked
and the Capital Bonds remain
on current terms
Step-up Percentage of 0.25% applies
Bondholders decide to:
a) accept New Conditions
b) reject New Conditions: or
c) do nothing
Election Notice given proposing New Conditions
Election Process not successful
Contact declares a Successful Election Process
2424
Key information and timeline
The Offer
Bookbuild process
NZX Firms, institutional investors and
other approved parties to be invited to
participate in the bookbuild process
No public pool
Minimum applications
$5,000 and multiples of $1,000 thereafter
Fees
Firm fees of 0.50% to those participating
in the bookbuild
Retail brokerage fee of 0.50%
2021
29 OctoberPDS lodged
8 November
Offer opens
Indicative pricing released
12 November
Closing Date
Rate Set Date
19 NovemberIssue Date
22 NovemberQuotation Date
202219 FebruaryFirst Interest Payment Date
202619 NovemberFirst Reset Date
203119 NovemberEquity credit content expected to fall to minimal (0%)
205119 NovemberMaturity Date
25
Thank you
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.