Infratil Infrastructure Bond, 2031

Infratil is New Zealand's best-known listed infrastructure investor, with stakes spanning renewable generation, data centres, telecommunications and Wellington Airport. It is also one of the most prolific retail bond issuers on the NZX Debt Market, and its bonds routinely price at the high end of the retail curve.

Infratil is unrated, which is a large part of why the yield is attractive. Investors are taking on the credit of a holding company whose income depends on distributions from underlying assets, rather than the balance sheet of a single regulated utility.

Interest is paid quarterly, which makes Infratil lines popular with retirees managing cash flow. Parcels trade from $5,000 through a sharebroker.

Infratil Infrastructure Bond, 2031 is bought and sold through a New Zealand sharebroker rather than direct from the issuer. You pay the prevailing market price plus brokerage, which is why the yield to maturity above differs from the 7.25% coupon.

Held to June 2031, you receive the scheduled interest and face value at maturity, assuming the issuer meets its obligations. Sold earlier, you receive whatever the market pays that day — higher if interest rates have fallen, lower if they have risen. Listed does not guarantee liquid, so the prudent assumption is that you hold to maturity.

This bond ranks as senior unsecured. Ranking determines where you stand relative to other creditors if the issuer runs into trouble, and it matters more than the headline rate.