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Genesis Energy Limited (GNE) has announced the terms of an offer to issue up to $75 million (with the ability to accept oversubscriptions of up to $25 million) of 18 March 2022 unsecured, unsubordinated, fixed rate bonds (GNE030). The indicative margin has been set at 1.45-1.60%pa over the swap interest rate, which would imply an interest rate of 4.25-4.40%pa if it were set today.

GNE is a diversified New Zealand energy company which sells electricity, reticulated natural gas and LPG through its retail brands of Genesis Energy and Energy Online. It is New Zealand’s largest energy retailer with around 630,000 customer accounts which represents a 26% market share. The Company generates electricity from a diverse portfolio of thermal and renewable generation assets. GNE also has a 31% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field located offshore from Taranaki.

GNE has maintained relatively stable financials since becoming a publically listed company in April 2014. This is expected to continue with a flat earnings outlook and the expectation that GNE will reduce debt in line with the decline in equity caused by Kupe’s declining oil/gas reserves. Standard & Poor’s (S&P) has a long standing BBB+ credit rating with a stable outlook on GNE.