The New Zealand investor in infrastructure and utilities, Infratil Limited (which has no credit ratings), announced its latest bond issue aimed at retail investors last week. It is seeking to raise NZ$25 million but will accept over-subscriptions of up to $75 million.This approach to bond issuance seems to be unique to New Zealand. While there are three arrangers of the issue, ANZ, Forsyth Barr and Westpac, there is no bookbuild prior to launching the issue, and applications can be made through any NZX-authorised primary market participant.The process is one of simply launching the issue and seeing how many applications are received. If applications don't reach NZ$25 million, the bond issue will be cancelled.This approach will result in flotation costs that are considerably lower than those incurred in Australia. However, the flotation process will be much longer, this offer may not close until June 27, and the outcome much more uncertain, as the issue size shows.However, the cost of the debt is certain. Infratil has said it will pay a coupon of 6.85 per cent on the bonds, which will mature on June 15, 2022. This works out at approximately 300 basis points over the interpolated nine-year swap rate at the time.A 300 bps spread may be attractive to yield-hungry retail investors, but it is a bit hard to tell whether the risk-return profile is attractive or not.The bonds are senior ranking bonds but the coupons are cumulative, with deferral being triggered by an "Interest Suspension Event". This is defined as Infratil directors advising the bond trustee that payment of the coupon is likely to result in Infratil becoming insolvent or breaching one or more covenants attached to other debt, or breaching any other legal obligation.A dividend stopper comes into effect if the coupons are suspended.It seems very unlikely that dividends would be deferred on senior ranking bonds, but then Infratil is a holding company totally reliant on its investment returns to meet its obligations. These investment returns may be volatile.Moreover, its obligations are not guaranteed by its subsidiary companies. In the event of a liquidation of the group, investors are structurally subordinated to the creditors of the Infratil subsidiaries.For retail investors in New Zealand who find the offer attractive, it will open tomorrow.