Transpower announces indicative issue margins

24 August 2012

Transpower New Zealand Limited (“Transpower”) today announced the following indicative margins in relation to its offer of up to NZ$200 million (with the ability to accept up to a further NZ$100 million in oversubscriptions) of unsecured, unsubordinated bonds (“Bonds”).

The indicative issue margin range for the floating rate bonds maturing on 3 December 2015 is 0.90 – 0.95 percent per annum.

The indicative issue margin range for the fixed rate bonds maturing on 6 September 2019 is 1.25 – 1.30 percent per annum.

An announcement of the actual issue margin for the floating rate bonds and the fixed rate bonds will be made on or shortly after 31 August 2012.

The issue price of the floating rate bonds will be determined by reference to the issue margin for the floating rate bonds in accordance with the Reserve Bank of New Zealand floating rate note pricing formula, which can be obtained from the Lead Managers on request. The interest rate payable in respect of the floating rate bonds will be the aggregate of the base rate (as set out in the pricing supplement no. 3 dated 17 August 2012) plus 1.10 per cent per annum.

The interest rate payable in respect of the fixed rate bonds will be the aggregate of the base rate (as set out in pricing supplement no. 4 dated 17 August 2012) on 31 August 2012, plus the issue margin for the fixed rate bonds.

Investors interested in the offer should contact either of the Lead Managers below, or their usual financial adviser, to request a free copy of the simplified disclosure prospectus (“Prospectus”) dated 17 August 2012 and the relevant pricing supplement(s):

Applications for Bonds can only be made using the application form included in the Prospectus. No applications for Bonds will be accepted or money received unless the subscriber has received a copy of the Prospectus and the relevant pricing supplement. The minimum application amount is for Bonds with a principal amount of at least NZ$5,000 and in multiples of NZ$1,000 thereafter. Interest will be paid by Transpower on the Bonds to the bondholders as at the relevant record date on each interest payment date specified in the pricing supplement for the relevant Bonds.

Application has been made to NZX Limited (“NZX”) for permission to list the fixed rate bonds on the NZDX and all the requirements of NZX relating to that application that can be complied with on or before the date of the Prospectus have been duly complied with. However NZX accepts no responsibility for any statement in the Prospectus, the pricing supplements or this announcement. NZX is a registered exchange, and the NZDX is a registered market, each regulated under the Securities Markets Act 1988.