- Release Date: 09/03/15 14:03
- Summary: GENERAL: AKC: Auckland Council opens a retail bond issue
- Price Sensitive: No
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AKC 09/03/2015 14:03 GENERAL PRICE SENSITIVE REL: 1403 HRS Auckland Council GENERAL: AKC: Auckland Council opens a retail bond issue Media Release 9 March 2015 Auckland Council opens a retail bond issue Auckland Council confirmed today that it is seeking to raise NZ$150 million, with the right to accept up to NZ$100 million of oversubscriptions, by way of retail bond issue. The proceeds of the issue will be used for the general purposes of the council, including refinancing maturing debt and funding investment in projects across the region. The offer, which is expected to open tomorrow, is for 5.5-year fixed-rate secured bonds, with an indicative margin in the low 0.30s% per annum area over the swap rate for the same period. The actual margin and interest rate of the bonds will be announced following a bookbuild, and after the offer closes on Friday 13 March 2015. The council reserves the right to vary the closing day of the offer or not proceed with the offer. The bonds are expected to be assigned a long-term credit rating of AA from Standard & Poor's and Aa2 from Moody's and are expected to be quoted on the NZX Debt Market*. The minimum investment amount is NZ$5,000, with multiples of NZ$1,000 thereafter. 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 may be preferred by law (including security interests that may have priority under the Personal Property Securities Act). Full details of the bond issue are contained in the attached series notice. A copy of the presentation that the council will be giving in relation to the bond offer is also attached. The offer is being made in accordance with the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as quoted debt securities. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX and is attached. For details of the application process for the bonds, investors should: - contact one of the joint lead managers: ANZ Bank New Zealand Limited 0800 269 476 Bank of New Zealand 0800 284 017 Commonwealth Bank of Australia 0800 272 633 Westpac Banking Corporation 0800 942 822 - contact an authorised financial advisor. There is no public pool for the offer, with 100% of the bonds reserved for the clients of the joint lead managers, institutional investors and other approved participants. *Application has been made to NZX Limited for permission to quote the bonds on the NZX Debt Market and all the requirements of NZX relating to that application that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. NZX is a licensed market operator, and the NZX Debt Market is a licensed market under the Financial Markets Conduct Act 2013. Ends For media assistance, please contact: John Bishop Treasurer, Auckland Council Phone 09 301 0101 End CA:00261598 For:AKC Type:GENERAL Time:2015-03-09 14:03:59
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