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- Release Date: 10/12/12 16:13
- Summary: GENERAL: AKC: Auckland Council opens new retail bond offer
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AKC
10/12/2012 14:13
GENERAL
REL: 1413 HRS Auckland Council
GENERAL: AKC: Auckland Council opens new retail bond offer
10 December 2012
Auckland Council opens new retail bond offer
Auckland Council today offered a retail bond issue for sale as it seeks to
raise up to NZ$125 million to fund investment in Auckland's infrastructure.
The offer, which is for 6-year, fixed-rate secured bonds, closes at 12 noon
on Friday 14 December 2012.
The bonds, which will be issued for a term of six years (maturing 18 December
2018), carry a credit rating of AA from Standard & Poor's and Aa2 from
Moody's.
"Auckland Council is one of the best-rated entities in the country, our
retail bond offer provides ratepayers and other retail investors the
opportunity to invest alongside institutional investors and banks in
Auckland's growth and see tangible outcomes from their investment." says
Chief Finance Officer, Andrew McKenzie.
"The offer is an effective and efficient way to raise debt to fund
infrastructure investment. 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," he says.
The minimum investment level is NZ$5,000, with multiples of NZ$1,000
thereafter.
The bonds form part of council's overall borrowing programme to fund its
investment in the region that will benefit all Aucklanders for generations to
come. Projects funded by the sale will include improved public transport,
sports fields, new libraries and community facilities.
The interest rate will be finalised on Friday 14 December 2012 and will be
the aggregate of the applicable 6-year swap rate at that time plus a margin
of 1.05 per cent per annum on that date.
Investors wishing to obtain an investment statement for this offer can:
contact one of the lead managers: ANZ on ph: 0800 269 476 or Bank of New
Zealand on ph: 0800 284 017
go online to www.aucklandcouncil.govt.nz
contact an authorised financial advisor.
The bonds are secured by a charge over the rates revenue of Auckland Council
and will rank equally with all other secured debt of Auckland Council. The
security is first ranking although other security is preferred by law
(including security interests that may have priority under the Personal
Property Securities Act).
Application has been made to NZX for permission to quote the bonds on the
NZDX. However, the bonds have not yet been approved for trading and NZX
accepts no responsibility for any statement in this announcement. NZDX is a
registered market and NZX is a registered exchange under the Securities
Markets Act 1988.
Council reserves the right to vary the closing day of the offer.
Applications for the bonds can only be made using the application form
contained in the Investment Statement.
Ends
For further information, please contact;
For media assistance, please contact:
Angela Jones
Senior media advisor
Phone: 021 278 6858
End CA:00230913 For:AKC Type:GENERAL Time:2012-12-10 14:13:58
