The Auckland Council says it'll pay annual interest of 4.41% on a NZ$125 million issue of six-year secured, unsubordinated retail bonds.
The offer, the first retail bond issue from the "Super City", closed today. Interest will be paid to investors semi-annually in arrears. The bonds are expected to be quoted on the NZX debt market from December 19.
“We are very pleased with the outcome of the bond issue and the continued support from investors in Auckland Council,” Treasurer Mark Butcher said.
The interest rate includes a base rate of 3.36% from the six-year swap rate, plus a 1.05% margin. The bonds have an AA credit rating from Standard & Poor's and an Aa2 rating from Moody's. See more detail on the bonds here.
The Auckland Council was established on November 1, 2010 through the amalgamation of eight councils in the Auckland region, - the Auckland Regional Council, Auckland City Council, Franklin District, Manukau City Council, North Shore City Council, Papakura District Council, Rodney District Council and Waitakere City Council.