NZ local authority offers up to NZ$200m in shares

WELLINGTON, Feb 4 (Reuters) - New Zealand local authority Bay of Plenty Regional Council said on Monday it would offer up to NZ$200 million ($157 million) in perpetual preference shares to invest in infrastructure in the region.

The council, through subsidiary Quayside Holdings Ltd, is offering NZ$150 million of shares with up to NZ$50 million in oversubscriptions.

"New Zealand retail investors have had limited opportunities to invest in a product supported by a local authority in recent years," said Chairman John Cronin.

Dividends would be paid quarterly and funded from dividends from Quayside's 55 percent stake in the Port of Tauranga Ltd (POT.NZ: Quote, Profile, Research) and other investments.

The dividends would be based on a fixed margin over the three-year fixed swap rate, with the margin to be set through a bookbuild on Feb 11.

It was intended to list the shares on the NZ Exchange's debt market (NZDX), and investors would also have an option to require the council to redeem the shares in certain circumstances, including a failure to pay a dividend.

The offer will open on Feb 12 and close on March 7, with First NZ Capital and ABN AMRO Craigs appointed as the joint lead managers. ($1=NZ$1.27) (Reporting by Brent Kininmont)