GFNZ Group raises $1.66 million
GFNZ Group, the former Geneva Finance, has raised $1.66 million from eight professional investors, two of whom are directors.
The NZAX-listed automotive industry financier placed $2.075 million of new business receivables into Prime Asset Trust and used this as security to raise the money.
In August, it placed $3.3 million of new business receivables into the trust as security to raise $3 million of new debt funding from its cornerstone investor, Federal Pacific Group.
GFNZ says the trust is an independent financing structure tapping professional investors.
The structure, which was developed in-house, is like a securitisation. The company sells the receivable and gets a cashflow and a subordinated position of up to 20 percent in the receivables but receives no cash from them until all investors' principal and interest is repaid in full.
The company is planning to use the facility again and has the ability to sell up to $7.5 million of assets to the trust, which would raise $6.5 million.
FedPac operates money transfers, currency trading, investments and personal finance throughout the Pacific region. Kerry-based Fexco bought into the business in 2009 setting up a joint venture with Auckland's Hutchison family, who owned the business.
GFNZ has undertaken a number of capital reconstructions. In November 2007 note holders accepted a six-month moratorium as a better offer than winding up the lender.
Last August, Standard & Poor's said GFNZ had experienced ongoing delays around a range of discounted funding initiatives and questioned its ability to meet its liquidity needs to and beyond March 2013.
The eight investors include chairman David Smale, director Robin King and others have previously invested in Geneva.