New Zealand Gazette – 1999 – No. 170

Page 4049

✨ Financial Statements



15 NOVEMBER NEW ZEALAND GAZETTE 4049
Electricity Corporation of New Zealand Limited
Notes to the Financial Statements

  1. Term liabilities
1999 1998
$M $M
ECNZ bond programme
Face value of bonds on issue 761 761
Fair valuation 23 28
784 789
Less: Bonds defeased (note 18) 70 70
714 719
Less: Unamortised discount 22 26
692 693
Loans from other sources 424 527
Less: Loans defeased (note 18) 138 138
286 389
Term liabilities including current portion 978 1,082
Less: Current portion 108 134
Total term liabilities 870 948

Term liabilities are repayable as follows:

Between one and two years 66 82
Between two and three years 490 66
Between three and four years 182 484
Between four and five years 44 228
Later than five years 88 88
Total 870 948

Interest rates payable, after giving effect to interest rate swaps, forward rate agreements and interest rate options on term liabilities, range from 4.9% to 9.6% (1998 7.3% to 9.6%).

Interest rate repricing

ECNZ has entered into a number of long term borrowings which have been swapped through the use of interest rate swaps into repricing periods earlier than the maturity of the borrowing. The majority of ECNZ’s remaining financial assets and liabilities have the same repricing and maturity profiles and are not interest rate sensitive. The interest repricing profile for ECNZ is as follows:

Within one year 369 321
Between one and two years 69 63
Between two and three years 378 68
Between three and four years 102 462
Between four and five years 27 55
Later than five years 10 85
Total 955 1,054

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 (1998 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).



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✨ LLM interpretation of page content

🏗️ Electricity Corporation of New Zealand Limited Financial Notes (continued from previous page)

🏗️ Infrastructure & Public Works
Term liabilities, Bonds, Loans, Financial statements, Interest rates, Repricing, Domestic bond programme, Negative pledge