Published 30 August 2009
Manukau City Council has decided on a further retail bond issue for $100 million after the success of a $90 million issue in July.
Mayor Len Brown said the previous bond issue, filled within 11 working days, was for mum-&-dad investors: “To a great extent, these were the people who invested in this bond offer and it shows New Zealanders are prepared to invest their hard-earned cash in their own communities.
“We believe that Auckland’s growth & success is a worthwhile investment. We are confident that, in this bond offer, ordinary New Zealanders, including those who missed out last time, share our belief and will again show their confidence in the community and take advantage of this opportunity.”
The council approved the bond issue at its meeting on Thursday. Finance director Dave Foster said it had also been discussed with & approved by the Auckland Transition Agency, which is managing the Auckland governance restructure.
The bonds are for 4 & 6 years, the same as the previous issue. The offer opened on 28 August and closes on Wednesday 23 September. It has a minimum investment of around $10,000.
Mr Foster said: “This bond issue will support the funding needs of the Auckland region as a whole, and brings another opportunity for the wider community to invest in the region’s future growth & development.”
The bonds are secured over the rates of the city through a debenture trust deed. They will have first ranking, alongside other council debt secured under that trust deed.
A detailed description of the security – including the effect of the Auckland regional governance reorganisation – is set out in the investment statement for the bonds. The arranger is BNZ Capital.
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Attribution: Council release, story written by Bob Dey for the Bob Dey Property Report.