It said it would offer six year, fixed rate secured bond, with the offer closing on Oct 12, when the interest rate would be finalised.

The rate would be the aggregate of the applicable 6-year swap rate at that time plus a margin of 1.08 per cent per annum on that date.

The Council is offering NZ$125 million of bonds with oversubscriptions of NZ$50 million. The issue's lead manages are the ANZ Bank and the Bank of New Zealand.

The bonds are to be secured over the Council's rates revenue, and an application to list them on the NZX has been made.