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NZ's Auckland Council puts off bond issue

N-Z-WELLINGTON: The local government authority for New Zealand city's biggest city Auckland said on Thursday it was putting a planned issue on hold as it looked at the implications of a court case.

 

Earlier this week, the Auckland Council had announced plans for the issue of up to NZ$175 million of six year, fixed rate secured bonds for infrastructure and other spending.

 

However, it said a court decision involving possible council liability for poorly constructed buildings raised some doubts about the legal documents for the planned issue.

 

"Council has decided to defer this offer, and will re-launch once Council has considered the implications of the decision, including on its offer document," it said in a statement.

 

It said the court decision had no impact on its existing bond issues, and expected to relaunch the latest offer in the near term.

 

Copyright Reuters, 2012