Auckland Council says it's considering making an offer of fixed-rate, secured bonds to the public and is seeking preliminary indications of interest.
The Council has appointed ANZ and BNZ as joint lead managers.
"The bonds would form part of council’s overall borrowing programme to fund its investment in the region that will benefit all Aucklanders for generations to come," Auckland Council says.
"Projects funded by the borrowing would include improved public transport, sports fields, new libraries and community facilities."
Full details of the bond issue are likely to be released, with the offer opening, next week. See Auckland Council's bond issuer page here.
Meanwhile the Local Government Funding Agency (LGFA), of which Auckland Council is a member, this week received NZ$922 million worth of bids for NZ$275 million of bonds sold in its latest auction.
A total of 56 bids were submitted with 20 successful.
The LGFA sold NZ$95 million worth of bonds due to mature on December 15, 2017 with a weighted average successful yield of 3.58%, and NZ$180 million of bonds maturing on March 15, 2019 with a weighted average successful yield of 3.92%.
(Update adds detail on LGFA auction).
1 Comments
Auckland Council says it's considering making an offer of fixed-rate, secured bonds to the public and is seeking preliminary indications of interest.
Lets hope the coupon is not too degraded to offset naive swap hedging losses.
Nonetheless an OBR buster - yippee!
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