Auckland Council considers retail bond offer
"If the council concentrated on core infrastructure services we wouldn't need extra money."
Featured comment(BusinessDesk) Auckland Council, New Zealand's biggest local body after its amalgamation of eight of the region's councils into one in November 2010, is seeking public feedback as it mulls an offer of fixed-rate secured bonds.
The bonds would form part of the council's overall borrowing programme to fund its investment in the region, it says in a statement.
The money will be used to improved public transport, sports fields, new libraries and community facilities.
The super city has appointed Australia & New Zealand Banking Group and Bank of New Zealand as joint lead managers and full details of the bond issue will be released on October 8.
The council's commercial interests include Ports of Auckland, Auckland Film Studios and a 22.4% shareholding in Auckland International Airport.
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Comments and questions4
Ah. More debt loading under a different name by Auckland Council.
They have previously borrowed at the 5 year swap rate plus 1-2% margin. So that is suggesting they will offer around 5% or so.
The likely rate of approx 5% is going to badly hurt those foolish enough to invest in bonds when interest rates rise in a few years. You are far better off to invest in a NZX listed company with a 5% or greater dividend.
Could this be to pay bigger inducement financial packages to the thousands of superstar intellects and workaholic 'carers' we have heard work in that leaky building (tells you something when they cannot even control the construction of their own -- naturally soon to be replaced by a $100+ palace more befitting their eminences)?
Or is it for a tunnel under Quay Street, so Ludo the Enviro Wizzo can clear the traffic below for the hundreds of thousands of pedestrians and legions of Aucklandsers who are said to cycle to work, but are too terrified to cross/use Quay Street, desperate as they are, to enjoy the massive attraction they are panting to see in the working harbour.
Hope so. Would speak volumes of the stewardship we are afflicted with right now.
If the council concentrated on core infrastructure services we wouldn't need extra money. Len Brown and his egotistical projects are killing Auckland Ratepayers. Enough!
The sooner NZ reverts to an electoral system where Property Owners elect the Council, the sooner Local Rates will come under control; and egotistical extravagances such as this and past ones that Manukau City has had to endure will never occur again.
Alternatively lets have a 'Poll Tax on incomes of all residents, including Marae Iwi organisations.