Auckland Council’s Historic Euro Medium Note Programme

12 December 2011
For immediate release

HSBC Arranges Auckland Council’s Historic Euro Medium Note Programme

HSBC is pleased to announce that it has arranged Auckland Council’s US$2.5bn Euro Medium Term Note Programme (EMTN) which enables the Council to access the offshore capital markets as part of its overall financing strategy.

The programme will enable the Council to become the first local authority in New Zealand to access foreign currency markets to meet its borrowing needs. This move was made possible following a recent law change, whereas previously local authorities were only able to borrow money domestically limiting the investors who could participate in bond issues.

Noel McNamara, Chief Executive, HSBC New Zealand, says: “HSBC is delighted to have successfully arranged Auckland Council’s EMTN programme following a RFP process in September. The ground breaking programme will see the Council lead the way for Local Authorities to borrow funds offshore. It also clearly highlights the advantages that borrowing in a currency other than New Zealand dollars can provide and ensures the Council has the widest range of investors open to it to meet its funding needs”

“HSBC’s local and international capabilities were invaluable in assisting the Council arrange the Programme and we look forward to the first bond issue as a result of the Programme,” continues McNamara.

Andrew McKenzie, Chief Financial Officer at Auckland Council, says: “The successful launch of this facility is a core part of council’s strategy to diversify its funding sources and lengthen the term of its borrowing. In going overseas, we will achieve both objectives and leverage off our position as one of the best rated institutions in the country. Auckland Council intends to fully hedge any currency exposure related to the borrowing.

“Auckland Council is committed to investing in the transformative projects that will benefit all Aucklanders for generations to come. To do so, we are looking at diversifying our sources of funding to secure the best rates for the people of Auckland region.”

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Notes to Editors

1. HSBC in New Zealand
HSBC in New Zealand operates through a network of branches and offices, providing personal and commercial financial services, payment and cash management, trade finance, treasury and financial markets, corporate banking, investment advisory and securities custody services. The principal HSBC Group member in New Zealand is The Hongkong and Shanghai Banking Corporation Limited, incorporated in Hong Kong SAR, acting through its New Zealand branch.

2. The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which serves customers worldwide from around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, the Middle East and Africa. With assets of US$2,691 billion at 30 June 2011, HSBC is one of the world’s largest banking and financial services organisations.

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