21 Feb 2019

Today's business news: What you need to know

1:05 pm on 21 February 2019

Latest - Official figures show electricity and gas suppliers are paying more to do business and have only been able to pass on some of that cost pressure to their customers.

silhouette of engineers standing at electricity station

Photo: 123RF

Prices paid by producers of electricity rose 23 percent in the December quarter, with lower lake levels and ongoing outages at the Pohokura gas field, putting pressure on generation.

Stats NZ said these kinds of price increases have not been seen since the 2008 power crisis.

The sector passed on only some of the costs - with prices up 18 percent for the quarter.

Visitor spending nudges higher in 2018

Overseas visitors are splashing more cash when coming to holiday in New Zealand.

Data released from the Ministry of Business Innovation and Employment shows total visitor spending rose six percent to $11.16 billion last year, compared with 2017.

Australian visitors continue to spend the most, followed by people from China.

However, there was a dip in spending by visitors from the United States and Britain.

The data shows most people are coming to New Zealand for a holiday, followed by visiting friends and family.

Further information about the International Visitor Survey would be released on 7 March.

Overall, there were 3.9m visitors from overseas lat year, up three percent on 2017.

Argosy and Precinct launch capital raise to pay off debt

Commercial property company Argosy has launched a $75 million capital raise to pay down bank debt.

The first $10m of the green bond offer will be available to its existing shareholders first.

Meanwhile, another listed property developer Precinct Properties raised $130m on the market in one day.

Precinct launched the capital raise offer with its positive half year result earlier this week.

Existing and new investors have already completed it, buying all of the shares on offer for $1.48 each.

The money will help Precinct pay down bank debt and fund new developments.

Tilt Renewables aiming to raise $A260m

Wind power company Tilt Renewables is aiming to raise about $A260m through an offer to shareholders.

It will issue one new share for every two held, at $NZ1.75 a share.

The money will be used to support the development of its Dundonnell wind farm project, as part of a contract with the Victorian government to supply renewable energy.