Downer to raise $150m in bonds

Last updated 11:29 27/05/2009

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Engineer Downer EDI is to seek to raise at least $100 million through bonds issued on the New Zealand market.

Downer said on Wednesday the bonds, called Works Bonds, would be for three years with a fixed rate to be determined on June 25.

Downer is seeking $100 million, with the ability to accept another $50 million.

The bonds will mature on September 15, 2012. Proceeds would be used to retire debt and for other "corporate purposes".

Downer said the bonds would be issued through an indirectly wholly-owned NZ subsidiary that was established for the purpose of issuing another security, called ROADS, in 2007.

Downer says it has appointed UBS, ANZ, part of ANZ National Bank Limited, Forsyth Barr Ltd, and Westpac Institutional Bank as Joint Lead Managers, and BNZ Capital, a division of Bank of New Zealand, as the Co-Manager for the Offer.

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- AAP