Published 9 December 2009
Auckland City Council plans to make a second retail bond issue. Its finance & strategy committee recommended today that the council seek to raise $350 million through a secured fixed-rate bond offer.
The draft timetable would see the opening of the bond issue & setting of the minimum rate on Friday 26 February, with closure on Thursday 11 March.
Under the operating protocols of the regional integrated treasury group, which allows the existing Auckland councils to co-ordinate treasury activities during the transition to the new Auckland Council, Auckland City Council will on-lend borrowed funds to the other councils on the same terms.
Committee chairman Doug Armstrong said Auckland City Council would also consider other funding options such as wholesale bonds and borrowing directly from banks.
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Attribution: Council release, story written by Bob Dey for the Bob Dey Property Report.