Media Release
28 August 2009

Council launches second bond issue

Following the demand for its first $90 million bond issue in July, Manukau City Council has decided on a further retail bond issue for $100 million.

Mayor Len Brown says that the previous bond issue, which was filled within 11 working days, was for ‘mum and dad’ investors.

“To a great extent, these were the people who invested in this bond offer and shows that New Zealanders are prepared to invest their hard-earned cash in their own communities,” Mr Brown says.

“We believe that Auckland’s growth and 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 yesterday evening. Finance Director Dave Foster says it has also been discussed with and approved by the Auckland Transition Agency, which is managing the Auckland’s governance restructure.

The bonds are for four and six years as was in the case of the last issue and therefore extend beyond 1 November 2010, when the Auckland Council comes into existence.

“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 and development,” Mr Foster says.

The offer opens today (28 August) and closes 23 September. It has a minimum investment of around $10,000. 

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, which can be obtained from Link Market Services Limited (phone 09 375 5998) or BNZ Capital (phone 0800 275 270).

The Arranger is BNZ Capital.

ENDS

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