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Manukau Mayor Len Brown says the Manukau City Council is launching a rare opportunity for ‘mum and dad’ retail investors to invest in the city’s infrastructure, through a Bond Issue for up to $90 million.
The council is taking this step to diversify its funding sources and to provide more funding certainty, Finance Director Dave Foster says.
“This funding will help us provide the assets, services and facilities needed to shape Manukau – and ultimately the greater Auckland region – for the benefit of our residents and businesses,” Mr Foster says.
The council has taken the formation of the new Auckland Council into account when deciding on the bond issue and has approval from the Auckland Transition Authority, given the bonds are for four and six years and therefore extend beyond November 2010, when the Auckland Council comes into existence.
“This is an exciting initiative, and provides a new opportunity for the wider community to invest in the city’s growth and development in the long term.”
The offer will be open from 22 July to 30 September 2009, and has a minimum investment for each series, of $10,000 and amounts of $1000 after that.
The bonds are secured over the rates of the city through a Debenture Trust Deed. They will have first ranking priority (except in limited circumstances where the law may decide otherwise), alongside other council debt secured under the trust deed.
A detailed description of the security, including the possible effect of the Auckland regional governance reorganisation on the security, is set out in the Investment Statement.
BNZ Capital, a division of Bank of New Zealand, is the arranger of the bond issue.
The Investment Statement and the current Rate Card are available from Manukau City Council, BNZ Capital and Link Market Services.
Note: A briefing will be held tomorrow (Wednesday 22 July):
Place: BNZ Capital
Level 3, BNZ Tower
125 Queen Street