Auckland City Council offers 6% for retail bond offer

Auckland City Council announced its NZ$150 million retail bond issue will have an interest rate of 6% and will open on February 23, closing on March 20. For a full list of retail bonds being offered in New Zealand see our bond-rush page. "The interest rate will be finalised on Monday, March 23 and will be the higher of 6.00% or the aggregate of the applicable five year swap rate plus a margin of 2.00% on that date," the council said in a statement to the NZX. The five year swap rate is currently just over 4% and has been fluctuating around that level for a number of weeks.