IFT190 Roll Over

[Grimy]

Infratil's IFT190 bond comes up for repayment next month (15/06). Was a nice earner at 6.85%.
Should hear what the terms will be for its replacement in the next couple of days.

[clearasmud]

High fives lol.
6 years hold? It was a lovely bond.

[Grimy]

I've had quite a few IFTs and apart from some of the ones in recent years they have been good returns. Among the others is IFT250, paying 6.15% until mid 2025.

[clearasmud]

Very nice.

[mcdongle]

I've had quite a few IFTs and apart from some of the ones in recent years they have been good returns. Among the others is IFT250, paying 6.15% until mid 2025.

I have some of these as well......... Trouble is as you get older the years seem to go quicker, 2025 will be here before i know it..

[Grimy]

You and me both.........

[Sideshow Bob]

Infratil Considers Infrastructure Bond Offer - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/392346)

[GTM 3442]

I see that the new issue is for 2030 - eight years.

What does this tell us about interest rate expectations I wonder.

[Grimy]

So IFT190 bond holders can decide what they want to do in respect of rolling over into the 8 year bond from the 3rd of June.
For me it will depend somewhat on what is happening on the NZX. Could be nice timing for some shareholding top-ups. But as we all know, a lot can happen in 2 weeks......

[Grimy]

I see that the new issue is for 2030 - eight years.

What does this tell us about interest rate expectations I wonder.

Reset after 4 years.

[GTM 3442]

Reset after 4 years.

Which to me indicates that they may see interest rates falling after that time.

Who wants to pay 5.5%(guess) if you can pay 3.75% over the second half.

[Grimy]

Chris Lee guessing initial rate around 5.5%. Am hoping for a bit higher, but as mentioned above, I may not roll it over.

[Grimy]

5.93% set for the first 4 years.

[Grimy]

Only a couple of months (15th December) until the IFTHC bond rate gets reset for the following 12 months. Currently paying 4.19% (think it was 3.5% at the beginning) and with the reset being the swap rate + 2.5%, the interest for the next year could get a decent boost.

[GTM 3442]

The IFTHA reset is in November. Currently 3.14%, now coming to reset with a 4.5% 1-year swap rate and a 1.5% margin, that looks set for about 6%. At the current price of $0.75, that's just on an 8% yield.

Nice,should've bought more when they were out of fashion in the mid-60s

[mcdongle]

Ha Ha me too