Council planning a retail bond issue

Following the call from Auck Transition Agency to raise more cash, Manukau City Council is planning a retail bond issue

The Manukau City Council is responding to a call from the Auckland Transition Agency to raise more cash.

It is planning a retail bond issue for up to $350 million, most of which will be on-lent to other councils in the Auckland region.

Finance director Dave Foster says it will help existing councils fund assets, services and facilities for development. The money will be sucked up by the Auckland super city council after November 1.

The bonds will be secured over the rates of Manukau City Council, but the super council will assume those obligations after the election.

A full investment statement is expected to be released late next month, in time for the offer to open early in September.