Interest optional on uni bonds 19 October 2009 5:49PM Philip Bayley In other news from New Zealand, Auckland International Airport is to issue up to NZ$125 million of five-year bonds and the University of Canterbury has launched a unique philanthropic ten-year bond issue, under which it is hoping to raise NZ$50 million and will take oversubscriptions of a further NZ$50 million. While the bonds will pay a coupon of 7.25 per cent for the first five years, investors will be encouraged to nominate a lower or no coupon and to donate all or part of their principal upon maturity. It will be interesting to see how investors react. If the bond issue is judged to be a success every other university in New Zealand and Australia may well follow suit.