Sharechat Logo

Auckland Council to offer $175M in retail bonds for infrastructure

Tuesday 9th October 2012

Text too small?

Auckland Council, New Zealand's biggest local body after its amalgamation of eight of the region's councils into one in November 2010, wants to raise up to $175 million in a retail bond offer.

The council plans to sell $125 million in six-year bonds, and will accept up to $50 million in oversubscriptions, it said in a statement. The funds will be used to pay for the council's infrastructure projects, and will carry credit ratings of AA from Standard & Poor's and Aa2 from Moody's Investors Service.

"The offer is an effective and efficient way to raise debt to fund infrastructure investment," chief financial officer Andrew McKenzie said. "When managed well, debt is a sensible way to fund our new capital projects and achieve the goal of making Auckland the world's most liveable city."

The interest rate will be set on Oct. 12 when the offer closes at 1.08 percentage points above the applicable six-year swap rate.

Australia & New Zealand Banking Group and Bank of New Zealand were appointed joint lead managers.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports