Contact Energy plans to raise up to $250 million through a public bond offer.
New Zealand's largest listed energy company will offer up to $150 million in bonds, with another $100 million in over-subscriptions.
It plans to use the money to increase its financial flexibility and extend its term funding profile.
The bonds will mature in 2042, but can be redeemed any time from 2017, and will have a coupon of at least 8%.
Standard & Poor's has assigned the bonds a rating of BB-.
Craigs Investment Partners is arranging the transaction and is the joint lead manager alongside ANZ, ASB Institutional and Forsyth Barr with Westpac acting as co-manager.
The offer is expected to open on 23 November and close on 15 December.