Local Government Funding Agency targets $300 million
It was initially mooted at the 2009 Job Summit as an opportunity for local government borrowers to make significant savings.
The Local Government Funding Agency aims to raise $300 million in a bond issue on Wednesday.
In what is the agency's first debt issue, it is offering two bonds, one that will mature on April 15, 2015 and another due to mature on December 15, 2017. Both are offering coupon rates of 6%.
The first issue aims to raise $50 million, with the other $250 million the target of the second issue.
Bids close at 2pm.
Incorporated on December 1 2011, the agency will operate as a large-borrower that will then re-lend to councils.
It was initially mooted at the 2009 Job Summit as an opportunity for local government borrowers to make significant savings.
Owned by 18 local authority councils and the Crown, the agency will provide investors with a new source of securities rated at AA+ (domestic long term) by international credit ratings agencies Standard and Poors and Fitch Ratings.
The ratings are the same as the New Zealand government.
Colin Williscroft
Tue, 14 Feb 2012
Tue, 14 Feb 2012
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Local Government Funding Agency targets $300 million
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