South Canterbury Finance's Secured Bond issue closes oversubscribed

Tuesday 17th June 2008

Strong support from across the investment sector has resulted in South Canterbury Finance's $125 million offer of Secured Bonds, including $50 million of oversubscriptions, closing fully subscribed.

The interest rate for the Secured Bonds (which is fixed for a three-year term) was set on Monday 16 June at 10.50%.

The Secured Bonds have been rated BBB- by Standard & Poor's which is consistent with South Canterbury Finance's rating of BBB-/Stable.

The Secured Bond issue further diversifies the company's funding base and follows its 2007 $125 million five-year bond issue and US$100 million private placement in the United States. Together, these three offers have raised approximately $375 million and demonstrated South Canterbury Finance's ability to successfully raise capital notwithstanding the recent volatility in financial markets.

"Diversification delivers added protection for all our investors, including debenture holders, bond holders, institutional investors and bankers, and safeguards the company against any potential vagaries that may affect any one particular funding channel," says Graeme Brown, South Canterbury Finance's chief financial officer.

"The company is pleased that, in addition to the strong demand for the Secured Bonds, there is a continued and steady inflow of new debenture funds."

South Canterbury Finance's three-year Secured Bonds will be quoted on the NZDX on Wednesday 18 June 2008.

Comments from our readers

No comments yet