Pursuant to section 160(3) of the Crown Entities Act 2004, I, Peter Mersi, Acting Secretary to the Treasury, hereby give notice that on 11 December 2006, The Honourable
Dr Michael Cullen, Minister of Finance, and The Honourable Steve Maharey, Minister of Education, gave approval under section 160(1)(b) of the Crown Entities Act 2004, in relation to section 161 of that Act, for Auckland Grammar School Board of Trustees to:
(a) borrow up to $1.753 million for a term of up to
15 years until 31 March 2022, subject to the following conditions:
(i) The total annual cost of repaying all outstanding debt (principal and interest) during the calendar years 2007 to 2012 does not exceed a total of 15% of the board’s operational funding in any of those calendar years inclusive of the 10% restriction specified in Regulation 12(1) of the Crown Entities (Financial Powers) Regulations 2005;
(ii) the minimum repayments of the loan must be in line with the schedule of repayments prepared by the board’s business manager so that annual debt servicing will reduce to below the 10% restriction by 2013;
(iii) the board must operate with annual operating surpluses and positive working capital throughout the term of the approval as detailed in the projected statement of financial position and financial performance;
(iv) the board must not borrow further from any other source while total debt repayments exceed 10% of the board’s operational funding, or extend the term of the total borrowing of $2.8 million past 31 March 2022, without reapplying to the ministry for approval; and
(v) the board must provide the ministry’s Northern Regional Financial Adviser with financial information every six months so that the ministry can monitor repayment of the loan and adherence with the conditions of approval; and
(b) enter into derivative transactions (interest rate swaps) on the reducing balance of total borrowings of
$2.8 million with ASB Bank Limited while this borrowing is repaid, but not past 31 March 2022.
Dated at Wellington this 16th day of January 2007.
PETER MERSI, Acting Secretary to the Treasury.