Contact Energy Closes $350 Million Green Capital Bond Offer at 1.70% Initial Margin

Anjali Anand

05 November 2026 03:14 PM AEDT

Contact Energy Closes $350 Million Green Capital Bond Offer at 1.70% Initial Margin

Image Source: Krish Capital Pty Ltd

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Contact Energy Limited (ASX:CEN) has closed its offer of unsecured, subordinated, redeemable, cumulative, interest-bearing green capital bonds on 5 November 2026, with $350 million allocated to bookbuild participants and their clients, including $125 million of oversubscriptions.

Key Points

$350 million of Capital Bonds allocated, including $125 million of oversubscriptions
Initial Margin set at 1.70% per annum
Total demand exceeded $790 million, representing approximately 2.3 times coverage of the offer size inclusive of oversubscriptions
Capital Bonds expected to be issued on 19 November 2026 and quoted on the NZX Debt Market on 20 November 2026
Interest Rate applying until the First Reset Date of 19 May 2032 to be announced separately

Green Capital Bond Offer Terms and Pricing

The Capital Bonds are unsecured, subordinated, redeemable, cumulative and interest-bearing. The Initial Margin has been set at 1.70% per annum. The Interest Rate that will apply until the First Reset Date of 19 May 2032 was to be announced later on 5 November 2026, with the final terms sheet to be released shortly after. The offer was arranged by Forsyth Barr Capital Markets Limited, with Bank of New Zealand and Craigs Investment Partners Limited acting as Joint Lead Managers alongside Forsyth Barr.

Bookbuild Demand Across Retail and Institutional Investors

According to the filing, the bookbuild recorded strong demand across both retail and institutional investors. Total demand reached over $790 million at the Initial Margin, representing approximately 2.3 times coverage of the offer size, calculated inclusive of oversubscriptions. The offer size of $350 million included $125 million attributed to oversubscriptions, with the allocated amount distributed among bookbuild participants and their clients following the close of the offer on 5 November 2026.

Issuance and NZX Debt Market Quotation Timetable

The Capital Bonds are expected to be issued on 19 November 2026. Quotation on the NZX Debt Market is expected to follow on 20 November 2026. Details of the offer and the Capital Bonds are contained in the Product Disclosure Statement, which is available on the Disclose register under offer number OFR15288. The filing noted that the final terms sheet would be released shortly after the Interest Rate announcement later on the day the offer closed.

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