Business in Auckland

Investor centre

Auckand city harbour view.

Investment in Auckland

On 1 November 2010, the eight councils in Auckland amalgamated to form Auckland Council - New Zealand's largest local authority.

Auckland is New Zealand's leading economic region, generating more than a third of the nation's GDP.

A strong institutional framework for local and regional governments supports our financial strength and stability. This includes the requirement to ensure our operating revenue is greater than our operating expenses each year.

We use borrowings to invest in new assets. How we manage borrowings and investments is contained in its Treasury Management Policy. More information is also available through our annual report.

Under the Local Government (Rating) Act 2002, we have flexible powers to set, access and collect rates to fund its activities.

We have provided security over our rates and rates revenue under a Debenture Trust Deed between us and Trustees Executors Limited as Trustee.

This is a first ranking security. The benefit of this security has been given to certain investors and others, and it can be given to new investors.

Our powers to set, access and collect rates are reflected in our credit quality:

Affirmed date Issuer rating Outlook

Standard & Poor's (Australia) Pty Limited

27 October 2016

AA 

Stable

Moody's Investor Services Pty Limited

27 October 2016

Aa2

Stable

Our group debt at 30 June 2016 is $7.6 billion. Auckland's 10-year budget forecasts group debt to peak at $11.6 billion by 2024/2025.

Our main funding sources are the domestic market (both retail and wholesale), the Local Government Funding Agency and offshore markets.


Retail investors

Auckland Council has five issues of fixed-rate retail bonds listed on the NZX Limited Debt Market (NZDX).

Amount

$350 million

$125 million

$200
million

$250 million

$250
million

$180 Million

Coupon interest rate

6.52%

4.41%

5.806%

4.017%

3.04%

3.338%

Issue date

29 September 2010

18 December 2012

25
March
2014

24
March
2015

30
March
2016

27 July 2016

Maturity date

29 September 2017

18 December 2018

25
March
2024

24 September 2020

30
March
2020

27 July 2026

Interest payment dates

March and September

June and December

March and September

March and September

March and September

January and July

NZDX ticker

AKC050

AKC060

AKC070

AKC080

AKC090

AKC100

 

These bonds are debt securities that pay a fixed rate of interest (coupon) and mature at a fixed time in the future (maturity date).

The bond issued on 29 September 2010 (AKC050) was issued to the public by Manukau City Council. The council took over all obligations relating to the bond on 1 November 2010.

The bonds are secured by the first ranking charge over all of our rates and rates revenue.

Your bonds

How to buy or sell retail bonds

We recommend you talk to an authorised financial adviser with any questions you have about whether you should buy, sell or continue to hold retail bonds.

Current trading price of Auckland Council bonds

See the NZX website for the current trading price and market announcements:

Interest payment dates

Interest on the bonds is payable twice a year in arrears, in two equal instalments, each year up to and including the maturity date.

Refer to the above links to find out the next interest payment date for each of the bonds.

Changed your address or bank account?

If you are a current bond holder and have recently changed your address or bank account, visit the Computershare website to update the registry.

Complaints

You can make complaints about Auckland Council's retail bonds by using our standard complaints process.

Auckland Council is a member of the Financial Disputes Resolution Scheme (FDR Scheme). The FDR Scheme is operated by Dispute Resolutions Services Limited (DRSL).

If you cannot agree with us on how to resolve your issue, you can refer the matter to DRSL by directing it to:

DRSL
Level 9
109 Featherston Street
Wellington 6011

Attention: Manager, FDR
Telephone: 0508 337 337
Facsimilie: 04 918 4901


Wholesale investors

Domestic wholesale investors provide around one third of our debt funding. These include:

  • large institutional investors
  • banks
  • insurance companies
  • KiwiSaver providers
  • fund managers.

We borrow from the wholesale market via a Medium Term Notes programme for long term borrowings, and Commercial Paper programme for borrowings of less than a year.

Both programmes are for wholesale investors only and are secured by the charge over our rates and rates revenue.


Offshore bond investors

The Local Government Act 2009 (amended in September 2011) allows the council to borrow in foreign currency.

We established a US$2.5 billion Secured Medium Term Notes Programme on 30 November 2011 and a AUD 1 billion Australian Debt Issuance Programme on 26 March 2013, allowing multi currency borrowings in offshore markets.

If any bonds are listed, they will be listed on the Singapore Stock Exchange. We undertook its first issue in March 2012.

All borrowings under the programme are fully hedged to eliminate foreign currency fluctuations.

Offshore investors, like domestic investors, receive as security the benefit of the charge over our rates and rates revenue.

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