Contact Energy Sets 5.80% Initial Interest Rate on $350 Million Green Capital Bonds Due May 2032

Aakashdeep

05 November 2026 03:14 PM AEDT

Contact Energy Sets 5.80% Initial Interest Rate on $350 Million Green Capital Bonds Due May 2032

Image Source: Krish Capital Pty Ltd

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Contact Energy (ASX:CEN) has set an initial interest rate of 5.80% per annum on its $350 million unsecured, subordinated, redeemable, cumulative, interest-bearing green capital bonds, with the rate applying until the First Reset Date of 19 May 2032.

Key Points

Initial interest rate set at 5.80% per annum, described as the Minimum Initial Interest Rate, applicable until 19 May 2032.
$350 million green Capital Bonds expected to be issued on 19 November 2026 and quoted on the NZX Debt Market under ticker code CEN100 on 20 November 2026.
Contact will redeem its existing green capital bonds (ticker CEN060) on 19 November 2026, coinciding with the first reset date for those bonds.
Contact may, at its absolute discretion, defer any interest payment on the Capital Bonds for up to five years.

Green Capital Bond Terms and Interest Rate Structure

Contact Energy has set the initial interest rate for its new green capital bonds at 5.80% per annum, which the company disclosed is the Minimum Initial Interest Rate. The rate will apply until the First Reset Date of 19 May 2032. Following that date, the interest rate will be reset every five years, unless the bonds are redeemed earlier by Contact. The company disclosed that it retains the right, in its absolute discretion, to defer any payment of interest on the Capital Bonds for a period of up to five years. A final terms sheet, updated to reflect the initial interest rate, was to be released via NZX on 5 November 2026.

Issuance and NZX Debt Market Listing Details

The Capital Bonds are unsecured, subordinated, redeemable, cumulative and interest-bearing instruments. According to the filing, the bonds are expected to be issued on 19 November 2026, with quotation on the NZX Debt Market under the ticker code CEN100 scheduled for 20 November 2026. The $350 million offering followed a bookbuild process, which the company described as successful. Forsyth Barr Capital Markets Limited acted as Arranger and Joint Lead Manager, with Bank of New Zealand and Craigs Investment Partners Limited serving as Joint Lead Managers.

Redemption of Existing CEN060 Green Capital Bonds

As a result of the completed bookbuild process, Contact Energy disclosed it will redeem its existing green capital bonds, currently quoted on the NZX Debt Market under ticker code CEN060, on 19 November 2026. That date coincides with the first reset date applicable to the CEN060 bonds. The company stated it would issue a formal notice of redemption to all holders of the CEN060 bonds on 5 November 2026, the same date the filing was released. No further financial details regarding the CEN060 redemption were disclosed in the filing.

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