Greenstone Energy, which is possessed jointly by Infratil and the New Zealand Superannuation Fund, announced to offer its bonds up to $200m to retail investors, to pay back its borrowings.

The fixed income experts have raised doubts against the Company for not revealing much financial detail regarding the offer, which has already caught the eye of investors, who presented non-binding offers of $130 million to acquire the bonds.

The bond issue is being managed by the First NZ and ANZ National, who were presented the non-binding applications for $130m worth of bonds, for the interest rate of the issue to be determined.

An interest rate of 7.35% has been settled for the offer. There is also provision in the bond issue to buy back the bonds any time after April 2013. The bonds can be acquired with a minimum investment of $5000.

No guarantee has been given by Infratil or NZSF for buying the bonds and they entail no credit rating, which do not reveal the risk the bonds possess. In case of any financial upheaval; every investor will have to face the brunt equally.

"The representative of First NZ was saying at the presentation that their calculation was that it was at, or about, investment grade. That's fine and dandy if they've got the information but they aren't sharing it", said a fixed-income Manager.