AKC
18/12/2014 10:08
WAV/RULE
NOT PRICE SENSITIVE
REL: 1008 HRS Auckland Council
WAV/RULE: AKC060: AKC - Waiver from NZX Debt Market Listing Rule 5.2.3
NZX Regulation Decision
Auckland Council (AKC)
Application for a Waiver from NZX Debt Market Listing Rule 5.2.3
18 December 2014
Decision
1. Subject to the conditions in paragraph 2 below, and on the basis that the
information provided by Auckland Council ("AKC") is complete and accurate in
all material respects, NZX Regulation ("NZXR") grants AKC a waiver from NZX
Debt Market Listing Rule ("Rule") 5.2.3 in respect of the AKC060 Bonds for a
period of twelve months from 18 December 2014, to allow AKC to have fewer
than 500 bondholders who are Members of the Public.
2. The waiver contained in paragraph 1 above is granted on the following
conditions:
a. AKC clearly and prominently discloses the waiver, its conditions, and its
implications in its half-year and annual reports; and
b. AKC notifies NZXR if there are any material changes to the spread of the
AKC060 Bonds.
3. The information on which this decision is based is set out in Appendix One
to this decision. This waiver will not apply if that information is not or
ceases to be full and accurate in all material respects.
4. The Rule to which this decision relates is set out in Appendix Two to this
decision.
Reasons
5. In coming to the decision to provide the waiver set out in paragraph 1
above, NZXR has considered that:
a. Debt Securities are generally not subject to the same degree of trading
activity as Equity Securities;
b. The condition contained in paragraph 2(a) above, will ensure that both
existing holders of the AKC060 Bonds, as well as those wishing to trade in
AKC060 Bonds, are aware that they may not satisfy the spread requirements of
Rule 5.2.3; and
c. NZXR has granted similar twelve month waivers in the past. The twelve
month waiver gives NZXR the opportunity to reconsider the spread of the
AKC060 Bonds in twelve months' time if a further waiver is required.
Appendix One
1. AKC is a Listed Issuer with bonds Quoted on the NZX Debt Market ("NZDX").
2. On 18 December 2012, AKC Quoted $125,000,000 fixed rate bonds maturing on
18 December 2018 on the NZDX ("AKC060 Bonds"). AKC060 Bonds are Quoted under
the ticker code AKC060.
3. On 5 October 2012, NZXR granted AKC a waiver ("2012 Waiver") from the
requirements of Rule 5.2.3 in respect of the AKC060 Bonds for twelve months,
commencing from the date of Quotation.
4. NZXR granted an extension of the 2012 Waiver on 17 December 2013 for a
further twelve months, commencing from 18 December 2013 ("2013 Waiver"). ACK
advised NZXR at the time the 2013 Waiver was granted, that the AKC060 Bonds
had 60 registered holders and 306 underlying holders.
5. AKC has applied for an extension of the 2013 Waiver. AKC has advised NZXR
that the number of registered holders and underlying holders of the AKC060
Bonds have increased to 74 and 359, respectively.
Appendix Two
Rule 5.2 Quotation of Securities
5.2.3 A Class of Securities will generally not be considered for Quotation
on the NZSX or NZDX unless those Securities are held by at least 500 Members
of the Public holding at least 25% of the number of Securities of that Class
issued, with each Member of the Public holding at least a Minimum Holding,
and those requirements are maintained, or NZX is otherwise satisfied that the
Issuer will maintain a spread of Security holders which is sufficient to
ensure that there is a sufficiently liquid market in the Class of Securities.
End CA:00259083 For:AKC Type:WAV/RULE Time:2014-12-18 10:08:50
