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PGG Wrightson taps banks for new funding

Wednesday 20th October 2010

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PGG Wrightson Finance, a unit of rural service provider PGG Wrightson, has secured a $100 million bank facility to help it get past the extended government deposit guarantee scheme.  

The financier, one of just seven deposit takers accepted into the extended guarantee, will tap a bank syndicate to extend its facilities for three years to get its funding profile beyond the term of the government scheme, which expires at the end of next year.  

"A bank agreement that exceeds that by some two years provides a solid backbone to our diversified funding plan," said chief executive Mark Darrow in a statement.

"It is important that we lengthen our maturity profile out past the end of the guarantee scheme." 

Darrow said investors were moving away from guaranteed deposits, with 30% of investors' money not subject to the guarantee or maturing beyond its expiry date. 

The announcement comes a day after Tim Miles, the managing director of Wrightson Finance's parent, stepped down amid a shift in the group's strategy and business model.

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