Bond Offer Very Popular

Manukau City Council has launched a bond issue to raise up to $250m with the right to accept up to a further $100m in over-subscriptions.

This bond offer has already met with a positive response, and the council is now accepting over-subscriptions to take the offer to $350m, says Leigh Auton, Chief Executive Officer for Manukau City Council.

Interested investors can take up this investment opportunity through their financial adviser. [Headliner readers can link to the Investment Statement by clicking on the advertisement on the Home Page of www.headliner.co.nz]. You should read the Investment Statement in full.

The minimum interest rate has been set at 6.45% p.a. with an issue margin of 1.90%.

The proceeds will go towards general financing for existing Auckland councils and after 1 November, for Auckland Council. Before 1 November 2010, the council will on-lend some of the net proceeds from the sale of the bonds to other existing Auckland councils.

The council is carrying out the bond issue at the request of the Auckland Transition Agency. The funding will help provide the assets and facilities that will help in the future development of Auckland region and provide the infrastructure for our communities and businesses.

Local governance in Auckland is going through huge change, with the new Auckland Council to be established on 1 November 2010, notes Auton.

“This Bond Offer is being made to the public at the request of the Auckland Transition Agency, on behalf of the Auckland Council.

“It is a compelling investment, secured over the rates revenue of Manukau and taken over from 1 November 2010 by Auckland Council,” he says.

“As we approach this key date, it is important that Manukau City Council and the other councils throughout the region continue managing their investments in infrastructure and assets that support our communities.

“The funds raised from this issue will be used for general financing requirements, and will also be on-lent to other Existing Councils in the region, to help fund capital projects.”

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