KiwiBonds commentary19 August 2026
Infratil IFT270 remains a high-coupon NZDX option
The 6.78% coupon continues to attract income investors seeking a shorter-dated, investment-grade infrastructure exposure.
About this bond
Infratil Limited is one of New Zealand's largest listed infrastructure investors. The IFT270 bonds are senior unsecured obligations of Infratil, quoted on the NZX Debt Market under ticker IFT270.
The 6.78% coupon is fixed for the life of the bond and paid semi-annually in arrears. Principal is repaid at maturity on 15 December 2028 unless the issuer redeems earlier under the bond terms.
Because this is an existing listed bond, investors buy at the current market price (which may be above or below face value) rather than subscribing to a new offer. The yield to maturity will therefore differ from the 6.78% coupon rate.
Security
Senior unsecured
Coupon
6.78% p.a. (fixed)
Listing
NZX Debt Market (IFT270)
Interest payments
Semi-annually, in arrears
Maturity
15 December 2028
Tax
RWT deducted at your elected rate
Where the money goes
Renewable generation
Infratil's portfolio includes wind, solar and geothermal assets that generate contracted or regulated revenue.
Digital infrastructure
Fibre, data centre and cloud connectivity assets serving Australasian enterprise customers.
Airport operations
Long-term holdings in airports that benefit from passenger growth and aeronautical charges.
Refinancing
The bond was issued to replace shorter-term bank facilities with fixed-rate listed debt.
Bond return calculator
Estimate coupon payments and after-tax returns at 6.78% p.a.
Per coupon payment
$254
Gross interest per year
$1,017
Total gross over 5 yr
$5,085
RWT deducted (33%)
- $1,678
Total after tax
$3,407
If coupons reinvested
$5,993
Indicative only. Figures assume the bond is held to maturity and the coupon rate does not change.
General market commentary
The following is illustrative general commentary about the New Zealand fixed-income market prepared by KiwiBonds.co.nz. It is not news reporting, is not attributed to any news organisation or issuer, and is not a forecast. Past or current market conditions are not a guide to future returns.
KiwiBonds commentary11 August 2026
Infrastructure issuers widen spreads as rates stay elevated
Investors are demanding higher coupons for longer tenors, but regulated infrastructure names remain in demand.
KiwiBonds commentary4 August 2026
Semi-annual paying bonds suit income-focused portfolios
Regular semi-annual coupons from listed infrastructure bonds are a popular replacement for laddered term deposits.
KiwiBonds commentary27 July 2026
Renewable energy assets underpin listed infrastructure debt
Long-term power purchase agreements are giving investors confidence in cash flows across the sector.
Key risks
- Credit risk: repayment depends on Infratil and the performance of its underlying infrastructure assets.
- Regulatory risk: changes to utility or airport regulation could affect revenue.
- Refinancing risk: principal must be refinanced or repaid at maturity in 2028.
- Liquidity risk: you may not be able to sell on market at the price or time you want.
- Interest rate risk: if market rates rise, the market value of the bond may fall below face value.
- Price risk: buying above face value will reduce your yield to maturity below the 6.78% coupon.
Frequently asked questions
How is interest paid?
Semi-annually in arrears, in NZ dollars, directly to your nominated bank account with RWT deducted at your elected rate.
What is the minimum investment?
NZX-listed bonds can typically be bought in board lots through a broker. Use our form and a broker will confirm the minimum parcel size.
Is this covered by the Depositor Compensation Scheme?
No. The DCS covers deposits with licensed NZ deposit takers. Corporate bonds are not covered.
Can I buy at face value?
This bond trades on the NZX Debt Market, so the price is set by buyers and sellers. You may pay more or less than face value.
How do I apply?
Register your interest using the form on this page and a broker will send you the current offer document, price and settlement details.
Infratil and all other company names, brands and logos referred to on this page are the property of their respective owners and are used for identification and comparison purposes only. KiwiBonds.co.nz is an independent website and is not affiliated with, endorsed by, sponsored by or acting as an agent for any issuer named. Product details, indicative rates, offer dates and market commentary on this page are illustrative summaries only, are not sourced from or approved by the issuer, and must not be relied on when making an investment decision.