Auckland City Council raises NZ$350 mln via 5 year bond at 6.28%

Auckland City Council has announced it has raised NZ$350 million through a 5 year bond issue at 6.28%, which is just above the 6.25% minimum set just before the offer opened on March 1. The bonds were aimed at retail and institutional investors with a minimum investment of NZ$5,000. Auckland City Council carried a AA minus credit rating and the margin was a surprisingly high 115 basis points over equivalent central government debt. Bank of New Zealand and Westpac Institutional Bank acted as Arrangers, Bookrunners and Joint Lead Managers for the issue. First NZ Capital and Goldman Sachs JBWere acted as Joint Lead Managers.