Council to offer retail bonds

From City Scene, published on 25 January, 2009.

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

Investors and ratepayers will be able to purchase retail bonds - which will enable the council to effectively and efficiently raise debt funding. The rate of interest is yet to be determined.

The funding will help the city's future growth and development, and the council is currently considering a retail bond offer of up to $150 million, for a term of five years.

Auckland City Council expects that investment statements will be available from mid-February.

No money is currently being sought and no applications for bonds will be accepted or money received unless the subscriber has received an investment statement.