Auckland Council opens green bond retail offer

Auckland Council has today opened its offer of up to NZ$150 million, with the right to accept up to NZ$50 million of oversubscriptions at Auckland Council's discretion of 5 year, unsubordinated, fixed rate green bonds ("Green Bonds"). The Green Bonds have an indicative margin range of 0.47 to 0.55% per annum over the swap rate for the same period. The actual margin and interest rate of the Green Bonds will be announced following a bookbuild, and after the offer closes on Thursday 21 June 2018. The council reserves the right to vary the closing day of the offer or not proceed with the offer. The proceeds of this offer are intended to be allocated in accordance with Auckland Council's Green Bond Framework to the financing or refinancing of existing and/or planned projects and assets that deliver positive environmental outcomes and which conform to the eligibility criteria set out in the framework or the refinancing of corporate debt that supports these projects or assets, in each case that align with the eligible sectors set out in the framework (as updated from time to time). The Green Bonds are expected to be assigned a long-term credit rating of AA from Standard & Poor's and Aa2 from Moody's and are expected to be quoted on the NZX Debt Market. The minimum investment amount is NZ$5,000, with multiples of NZ$1,000 thereafter. The Green Bonds are secured by a charge over the rates revenue of Auckland Council and will rank equally with all other secured debt of Auckland Council. The security is first ranking although other security may be preferred by law (including security interests that may have priority under the Personal Property Securities Act). The full details of the offer are contained in the Product Disclosure Statement ("PDS") (attached) and in the Register Entry for the offer available at www.companiesoffice.govt.nz/disclose. Investors must receive a copy of the PDS before they acquire any Green Bonds. Summarised terms of the offer are contained in the attached Terms Sheet. A copy of the presentation that the Issuer will be giving to investors in connection with the offer is also attached. The offer is being made in accordance with the Financial Markets Conduct Act 2013 as a regulated offer of debt securities utilising Regulation 49G of the Financial Markets Conduct Regulations 2014 ("Regulations") so that a short-form product disclosure statement may be used as the offering document. The notice required by the Regulations has been provided to NZX and is attached. There is no public pool for the offer, with 100% of the bonds reserved for the clients of the Arranger, Lead Manager and Green Bond Coordinator, Comanagers, institutional investors and other approved participants. For details of the application process for the bonds, investors should: ? contact the Arranger, Lead Manager and Green Bond Coordinator: ANZ Bank New Zealand Limited 0800 269 476 ? contact one of the Co-managers: Bank of New Zealand 0800 284 017 Westpac Banking Corporation (ABN 33 007 457 141) (acting through its New Zealand branch) 0800 942 822 ? contact an authorised financial advisor Ends For further information please contact: Brendan Manning, Public Affairs Mobile 021 806 370 brendan.manning@aucklandcouncil.govt.nz End CA:00319485 For:AKC Type:OFFER Time:2018-06-18 08:57:41