New Zealand Gazette – 1998 – No. 189

Page 4441

✨ Financial Statements Notes



NEW ZEALAND GAZETTE

24 NOVEMBER

Electricity Corporation of New Zealand Limited

Notes to the Financial Statements

Domestic bond programme

ECNZ offers bonds to institutional and retail investors pursuant to its domestic bond programme. Bonds outstanding have coupon interest rates ranging from 8% to 10% per annum (1997 8% to 10%) and maturity dates between 1999 and 2009. The bonds are issued under a Trust Deed dated 23 August 1988 made between ECNZ and The New Zealand Guardian Trust Company Limited as trustee.

Negative pledge

Under the terms of the Trust Deed ECNZ has given a negative pledge that so long as any bond remains outstanding it will not, subject to certain exceptions, create or permit to exist any charge over any of its assets to secure any securities issued by it or any guarantee given by it of any securities issued by any other person unless the benefit of such charge is extended equally and rateably to the bonds or to any guarantee of the bond moneys given by it, or there is provided to the bondholders such other security as may be approved by an extraordinary resolution of bondholders.

In addition to the negative pledge given in the Trust Deed for ECNZ bonds, ECNZ has given undertakings that it will not create or permit to exist any security interest on its assets as security for any other indebtedness except on the conditions specified in the undertakings and/or with the prior consent of the lenders concerned (as the case may be).

12. Deferred taxation

1998 $M 1997 $M
Deferred taxation at start of the year 159 290
On profit for the year (note 5) (49) (12)
Deferred tax effect of fair valuation - (120)
Deferred taxation at end of the year 110 158

13. Equity

Equity includes issued and paid up capital of:

1,000,000,000 ordinary shares

| | 1,000 | 1,000 |

Ordinary shares

All issued ordinary shares in ECNZ are owned by the Crown. Holders of ordinary shares have the following rights:

(a) The right to receive notice of and attend and vote at a meeting of the shareholders of the Company on any resolution. Each holder of a share will have one vote.

(b) The right to an equal share in dividends on a per share basis.

(c) The right to an equal share in the distribution of surplus assets on a per share basis.

14. Capital commitments

Commitments in respect of contracts for capital expenditure

| | 160 | 254 |

15. Operating lease commitments

Operating lease commitments are payable:
Within one year 2 2
Between one and two years 1 1
Between two and five years 4 5
Later than five years 8 12
Total 15 20

The operating leases are of a rental nature and are on normal commercial terms and conditions. The majority of the lease commitments are for building accommodation. The remainder relate to land or small items of plant and equipment.



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🏭 Electricity Corporation of New Zealand Limited Statement of Financial Position (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Fixed Assets, Current Liabilities, Valuations, Bonds, Equity, Deferred Taxation, Capital Commitments, Operating Leases