Hi guys, thanks for all the info above, much appreciated, for my learning I was looking at the infratil bond offer.
Can someone please explain how these numbers work? and how these all interact to get a final interest rate for the bond?
Minimum Interest Rate: 7.05% per annum.
Issue Margin: The Issue Margin will be determined by Infratil in consultation with the Joint Lead Managers (identified on page 10) on the Rate Set Date following completion of the book build process for the Firm Offer and will be announced via NZX and available on Infratil's website
www.infratil.com/for-investors/our-bonds shortly thereafter.
Indicative Issue Margin: The indicative Issue Margin range is 2.40% to 2.55% per annum. The actual Issue Margin may be above, within or below the indicative range.
Base Rate: The mid-market rate for a New Zealand dollar interest rate swap of a term matching the period from the Issue Date to the Maturity Date as determined by Infratil in consultation with the Arranger (identified below) on the Rate Set Date in accordance with market convention with reference to Bloomberg page ICNZ4 (or any successor page), in each case expressed on a quarterly basis (and rounded to 2 decimal places, if necessary, with 0.005 being rounded up).