The Post16 August 2026
Mercury green bond taps retail demand for clean energy
The NZ$200m green retail issue is expected to reach capacity quickly as investors seek certified sustainable income.
About this bond
The Mercury NZ Green Retail Bond finances new renewable generation, including geothermal, wind and solar projects, plus grid-scale battery storage that supports the national electricity grid.
Coupons are paid semi-annually in NZ dollars and proceeds are tracked under Mercury's published green finance framework, with external review of allocation and impact reporting.
At 5.90% p.a. this issue offers a green-labelled income option backed by one of New Zealand's largest renewable energy generators.
Framework
Certified green bond, annual impact report
Security
Senior unsecured
Listing
Expected NZX Debt Market quote
Interest payments
Semi-annually, in arrears
Generation mix
Geothermal, wind, solar and battery
Tax
RWT deducted at your elected rate
Where the money goes
Wind farm expansion
Development of new wind capacity in the North Island and repowering of existing turbines.
Geothermal maintenance
Well maintenance, steamfield upgrades and efficiency improvements at existing geothermal stations.
Grid-scale battery storage
Battery energy storage systems to support grid frequency and store surplus renewable generation.
Solar and distributed energy
Commercial and industrial solar installations plus behind-the-meter battery projects.
Bond return calculator
Estimate coupon payments and after-tax returns at 5.90% p.a.
Per coupon payment
$221
Gross interest per year
$885
Total gross over 5 yr
$4,425
RWT deducted (33%)
- $1,460
Total after tax
$2,965
If coupons reinvested
$5,104
Indicative only. Figures assume the bond is held to maturity and the coupon rate does not change.
Latest news & market buzz
BusinessDesk9 August 2026
Battery storage projects grow as grid reliability tightens
Mercury's battery investments are seen as critical to managing the intermittent output of new wind and solar farms.
Interest.co.nz2 August 2026
Green bonds tighten as KiwiSaver mandates expand
Sustainability-labelled bonds continue to attract strong demand from retail and wholesale ESG mandates.
NBR25 July 2026
Renewable generators turn to bond markets for growth capital
Power companies are choosing fixed-rate bonds to fund long-dated generation assets without diluting equity.
Key risks
- Credit risk: repayment depends on Mercury NZ meeting its obligations.
- Generation risk: dry years, wind conditions or equipment outages can affect electricity output and revenue.
- Wholesale price risk: electricity spot prices are volatile and affect generator profitability.
- Liquidity risk: you may not be able to sell on market at the price or time you want.
- Interest rate risk: over a five-year term, rising market rates can reduce the bond's market value.
Frequently asked questions
How often is interest paid?
Every six months in arrears, in NZ dollars, with RWT deducted at your elected rate.
What is the minimum investment?
NZ$10,000, then multiples of NZ$1,000 above that.
What makes it a green bond?
Proceeds are allocated to eligible renewable generation and energy storage projects under Mercury's green finance framework, with annual reporting.
Is it covered by the Depositor Compensation Scheme?
No. The DCS applies to deposits with licensed NZ deposit takers, not to corporate bonds.
How do I apply?
Register your interest using the form on this page and a specialist will send the offer document and application link.