The Dunedin City Council is saving almost $2m a year in interest, having renegotiated bonds.

Its treasury company received strong interest in the two bonds, collectively worth $95m.

They are for periods of five and ten years.

The council says the refinancing, coupled with a maturing floating rate note and hedging, means an interest saving of about $1.9m a year.

Dunedin City Treasury manages debt for the council and its companies.