Sharechat Logo

Another fin coy bond offer

Friday 20th June 2008

Text too small?
While much attention has been on bond offers from Marac and South Canterbury Finance, one other has been seeking Capital too.

Hanover Capital is quietly pushing its preferential bonds to investors at what are some of the top rates in the market.

It is offering 14.05% for a year, an additional 50 points for 36 months and 15.05% for five years.

This compares with 10.45%, 10.80% and 10.00% for two, three and five year debentures from Hanover Finance.

Hanover chief operating officer Perry Cornish says this offer is really something which appeals to the more sophisticated investor, rather than the Mum and Dads.

He acknowledges the rates are high, but suggests the risk/return equation is in balance especially when compared to what an offer from a BB+ rated company is trading on the NZDX.

Hanover Finance currently has a BB+ rating from Fitch, however the Hanover Capital offer is unrated.

The bonds are essentially tier two capital for Hanover and described as first ranking, however they are not secured.

The money raised by Hanover Capital through the preferential bond issue is invested in Hanover Finance redeemable preference shares.

"The redeemable preference shares issued by Hanover Finance to Hanover Capital rank behind all secured and unsecured creditors of Hanover Finance, but ahead of the shareholders of Hanover Finance in respect of distributions of capital and on winding up," the investment statement says.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing