UnitedNetworks bridges the gap

By RICHARD BRADDELL

UnitedNetworks will pay off bridging finance, used to acquire the Orion gas network a year ago, through $1.3 billion in borrowing programmes organised this week.

A $175 million six-year bond issue completed on Monday, was followed yesterday by the announcement of a $A1 billion ($NZ1.1 billion) debt programme.

UnitedNetwork's chief financial officer, Ian Hadwin, said Australia was being tapped for the second round of borrowing because of the limited size of New Zealand's market.

While the Australian programme was nominally for $A1 billion, a triple A rated issue of $A470 million ($NZ560 million) - that would retire the last of the Orion bridging finance - would be launched in the coming weeks.

Mr Hadwin said the balance of the $A1 billion simply involved getting the paper work in place should UnitedNetworks want to go to the market for more money to finance growth.

There has been speculation that UnitedNetworks, which has been expanding into telecommunications, might be interested in a stake in Clear Communications.

But Mr Hadwin said UnitedNetworks was not at present looking at the telecommunications firm.

"If the opportunity came along we would have to have a look at it to see if it makes sense, just as with any other opportunity."