Auckland Council says it's considering launching a 10-year fixed-rate retail bond offer.
In a brief statement the Council doesn't indicate how much money it may seek to raise.
"The bonds are expected to have a term of 10 years and will form part of Council’s overall borrowing programme, which includes refinancing maturing debt and funding investment in projects across the region that will benefit all Aucklanders for generations to come," the Council says.
Auckland Council says it has appointed ANZ as bookrunner and joint lead manager, plus BNZ and Westpac as joint lead managers.
Full details of the bond issue will be released and the offer will open on March 14, the Council says.
Auckland Council completed its first domestic retail bond issue in December 2012, paying annual interest of 4.41% on a $125 million issue of six-year secured, unsubordinated retail bonds.
The Auckland Council "Super City" was established on November 1, 2010 through the amalgamation of eight Auckland councils - the Auckland Regional Council, Auckland City Council, Franklin District, Manukau City Council, North Shore City Council, Papakura District Council, Rodney District Council and Waitakere City Council.
4 Comments
It could be either actually. It was the first issue by the "SuperCity" council and the most recent one. Although I an referring to domestic issues here. They have done some overseas to. There's more detail in this article I did last September - http://www.interest.co.nz/bonds/66237/auckland-council-borrows-nz300m-t…-
I really have an issue with this .
Who manages the risks associated with this?
What precisely is the money to be spent on ?
Money is FUNGIBLE so is it going to be wisely spent on benefit or yield generating assets , or is it going into the pot of funds for recurrent expenditure ?
My principled stance on this is its like someone being allowed to borrow money on your behalf , without asking you if its okay .
Its not okay .... okay
Picture this, you were walking along minding your own business. A fella came up to you and demanded you to pay him $20. Then few hours later, the same person returned to borrow $100 from you, He promised that he will pay you back with interest and that interest will be from the $20 he collected from you earlier..
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