4208 NEW ZEALAND GAZETTE, No. 167 30 SEPTEMBER 2005

Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2005

GAS DIVISION

6 US Dollar Private Placement Notes

As Powerco Limited is an integrated business, this disclosure relates to the business as a whole.

On 30 June 2005, US dollar private placement notes on issue were:

294,266

The USD Private Placement note issue took place on 25 November 2003 to private US investors. The coupon payments are semi-annual and the note issue expires 25 November 2014 (11 year), 25 November 2015 (12 year), and 25 November 2016 (13 year).

As at 30 June 2005, the interest rates on the notes were:

• 11 year USD private placement notes 5.47%
• 12 year USD private placement notes 5.67%
• 13 year USD private placement notes 5.67%

The USD Private Placement notes have the benefit of the Security Trust Deed as a Senior Secured Facility.

7 Commercial Paper Facility

As Powerco Limited is an integrated business, this disclosure relates to the business as a whole.

The Company has established a commercial paper facility to enable the Company to borrow money from the capital market. The programme is supported by a cash advance facility of $200 million with a syndicate of banks made up of the Commonwealth Bank of Australia, Westpac Banking Corporation and ANZ National Bank, which continues until 3 August 2007. The facility has the benefit of the Security Trust Deed dated 10 March 2005 entered into by the Company, and is a Senior Secured Debt Facility for the purposes of the Security Trust Deed. At year-end a sum of $150,000,000, which includes an interest portion of $2,310,162 of 90 day bills, with varying maturity dates, had been drawn down under the commercial paper programme (2004: $120,000,000 was drawn down under the commercial paper programme which included an interest portion of $1,723,029).

8 Commercial Bank Debt

As Powerco Limited is an integrated business, this disclosure relates to the business as a whole.

As at 30 June 2005 the balance of Commercial Bank Debt is $359,687,000. This includes a $160 million Term Loan Facility agreed and drawn in August 2004, expiring August 2009, which was used to refinance the remaining tranche of the Asset Purchase Facility used to fund the acquisition of United Networks Limited (UNL) assets. The Term Loan Facility is jointly provided through Commonwealth Bank of Australia, Westpac Banking Corporation and ANZ National Bank, each with an equal share. The Term Loan Facility has the benefit of the Security Trust Deed, for the purposes of which it is designated as a Senior Secured Debt Facility. The $180 million refinancing of the redeemable bonds is also included in this amount, as detailed in note 2 above.

Powerco Tasmania, a wholly-owned subsidiary, operates a working capital facility for up to AUD$30 million with Westpac Banking Corporation. The facility expires in August 2007. As at 30 June 2005, Powerco Tasmania had drawn down NZD$19.7 million (AUD$18 million) on this facility.

9 Working Capital Advances Facility

As Powerco Limited is an integrated business, this disclosure relates to the business as a whole.

Powerco Limited operates a wholesale capital advance facility with the Commonwealth Bank of Australia for up to $30 million. The facility, dated 22 March 2005, replaced a similar facility held with Bank of New Zealand for up to $15 million. As at 30 June 2005, funds to the amount of $26.2 million were drawn down on the facility (2004: investment of $9,388 million), offset by unrealised deposits of $410,894. The facility is based on a revolving credit arrangement and as such does not have set repayment dates. The facility expires on 22 March 2008 but is subject to automatic renewal for a further period. The facility has the benefit of the Security Trust Deed, as a Senior Secured Debt Facility.

As at 30 June 2005, Energy Brokers New Zealand Limited had cash and deposits of $115,734 (31 March 2004: $114,115).

As at 30 June 2005, Powerco Tasmania, a wholly-owned subsidiary, had deposits on call of NZD$2,171 million (AUD$1,985 million) with Westpac Banking Corporation (31 March 2004 NZD$2.332 million (AUD $2.033 million)) and cash and deposits of NZD$120,763 (AUD$110,417).

10 Property, Plant & Equipment

Property, Plant and Equipment as at 30 June 2005