Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


City Council approves plans for bond investment

Auckland City Council
Media release

10 December 2008

Auckland City Council approves plans for retail bond investment

Auckland City Council has approved plans to offer a retail bond issue to investors.

A retail bond issue will give ratepayers and other investors the opportunity to participate in Auckland city’s future development and growth by investing in a portion of Auckland City Council’s debt, and receiving a competitive rate of interest. For the council, it is an effective and efficient way of raising debt funding.

Auckland City Council is considering a retail bond offer of up to $200 million, for a term of seven years.

Councillor Douglas Armstrong, chairperson of the Finance and Strategy Committee says, “This is all about being financially prudent during a difficult time to ensure we are handling the city’s finances in a responsible and careful manner. Operating efficiently and effectively are key focuses. We consider many funding options before borrowing money and committing future rates money.

“Debt, when well managed, is a fair way to fund capital projects in the city, as the cost of large projects is spread across current ratepayers as well as those who will benefit in the future.

“Bonds are an effective method for any organisation to raise funds and borrow money. The retail bond issue will be used to increase funding certainty by refinancing existing short-term debt and covering the remainder of the current financial year’s borrowing requirements.

“The council’s high long-term credit rating of AA and the security of the council’s rates revenue are compelling attractions for investors.”

Market conditions and demand point to a retail bond issue as having the greatest likelihood of achieving the projected funding required by the council at this stage at an appropriate cost.

Earlier this year, the Securities (Local Authority Exemption) Amendment Act was passed with the intention of encouraging local authorities to return to the retail debt market.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Life And Times Of Peter Dunne

In the end, Mr Pragmatic calmly read the signs of impending defeat and went out on his own terms. You could use any number of clichés to describe Peter Dunne’s exit from Parliament.

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>


Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>


Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>


Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>





Featured InfoPages

Opening the Election