12 Dec 2011

Auckland Council gets overseas loan facility

8:30 pm on 12 December 2011

Auckland Council has become the first local body to secure the ability to borrow money overseas.

The country's largest local body will have access to up to $3.2 billion, in a deal arranged by the bank HSBC.

The council says it has so far made no firm plans to borrow overseas.

A change to legislation has loosened restrictions that meant local bodies had to borrow within New Zealand.

Auckland Council has been put on notice of a possible ratings downgrade, to the third highest level, with the agency Standard & Poor's, noting plans to increase debt for major insfrastructure projects.