Transpower New Zealand Limited announces Indicative Issue Margin Range

20 November 2013

Transpower New Zealand Limited (“Transpower”) today announced the following indicative issue margin range in relation to its offer of up to NZ$100 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 Bonds, which are to mature on 30 November 2018, is 0.80 - 0.85 per cent per annum.  The Bonds will be fungible, and will together form one tranche, with the existing Transpower fixed rate bonds issued on 30 November 2011 (TRP010).

The Bonds are expected to be quoted on the NZX Debt Market, the debt security market operated by NZX Limited (“NZX”), from 2 December 2013.

An announcement of the actual issue margin for the Bonds will be made on or shortly after 25 November 2013.

The interest rate payable in respect of the Bonds will be 5.14 per cent per annum. The issue yield of the Bonds will be the aggregate of the base rate (which is to be determined as set out in pricing supplement no. 7 dated 15 November 2013 (“Pricing Supplement”) on 27 November 2013), plus the issue margin for the Bonds.  The issue price per bond will be determined on 27 November 2013 by reference to the issue yield in accordance with the Reserve Bank of New Zealand semi-annual bond pricing formula, which can be obtained from the Lead Manager upon request.

Investors interested in the offer should contact the Lead Manager, Westpac Banking Corporation (acting through its New Zealand Branch), on 0800 942 822, or their usual financial adviser, to request a free copy of the simplified disclosure prospectus dated 15 November 2013 (“Prospectus”) and the Pricing Supplement.

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 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.

Application has been made to NZX Limited (“NZX”) for permission to list the Bonds on the NZX Debt Market 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 Supplement or this announcement. NZX is a registered exchange, and the NZX Debt Market is a registered market, each regulated under the Securities Markets Act 1988.