Wednesday 23rd March 2016 |
Text too small? |
Auckland Council has raised $250 million selling four-year bonds at an annual interest rate of 3.04 percent, a record low for the local authority in New Zealand's biggest city.
The council set the coupon at 60 basis points over the comparable swap rate, currently at 2.43 percent. The four-year swap rate has tumbled about 114 percentage points in the past 12 months as weak inflation keeps benchmark interest rates anchored near all-time lows. By contrast, the coupon on the council's existing December 2018 bonds is 4.41 percent.
Record-low borrowing costs have lured companies back to the debt market to raise funds, with Genesis Energy, Meridian Energy, Spark New Zealand, Auckland International Airport and Fonterra Cooperative Group all selling new bonds this year.
Auckland's bond sale settles on March 30, and will be quoted on the NZX Debt Market from March 31.
BusinessDesk.co.nz
No comments yet
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director
CHI - New customer contract to upgrade Marsden Point