Auckland Council raises $250M selling four-year bonds at record-low coupon of 3.04%
By Sophie Boot
March 23 (BusinessDesk) - Auckland Council has raised $250 million selling four-year bonds at an annual interest rate of
3.04 percent, a record low for the local authority in New Zealand's biggest city.
The council set the coupon at 60 basis points over the comparable swap rate, currently at 2.43 percent. The four-year
swap rate has tumbled about 114 percentage points in the past 12 months as weak inflation keeps benchmark interest rates
anchored near all-time lows. By contrast, the coupon on the council's existing December 2018 bonds is 4.41 percent.
Record low borrowing costs have lured companies back to the debt market to raise funds, with Genesis Energy, Meridian
Energy, Spark New Zealand, Auckland International Airport and Fonterra Cooperative Group all selling new bonds this
year.
Auckland's bond sale settles on March 30, and will be quoted on the NZX Debt Market from March 31.
(BusinessDesk)