Auckland in New Zealand and Switzerland do not, at first sight, appear to have much in common. So Auckland Council’s decision to issue its first offshore public bond issue in Swiss francs naturally took some explaining. The decision marked the culmination of a two-year process, which began shortly after the New Zealand government merged eight local authorities into Auckland Council. “The transition happened in November 2010 and it was done to create a more efficient and cost-effective organisation,” says Auckland Council treasurer Mark Butcher.
Auckland accounts for 32% of New Zealand’s population and 37% of its gross domestic product, so it plays a dominant role in the country. It is also growing fast, with the population of the region expected to increase from 1.5 million to 2.4 million over the next 30 years. “That predicted growth path, combined with a long period of under-investment in infrastructure across New Zealand, means that we now have a big infrastructure programme in place and we need to fund it,” says Mr Butcher.
