Heartland, the combined Marac Finance, CBS Canterbury, and Southern Cross Building Society, is considering launching a bond issue as part of its funding strategy.
The company signaled the bond issue today while updating the market on its liquidity position and purchase of PGG Wrightson’s finance arm.
Heartland said if its proposed acquisition of PGW Finance goes ahead it will take on $92 million worth of retail bonds that mature in October this year.
The company said it has sufficient cash on hand to repay the maturing PWF bonds in full but will look at a bond issue of its own.
“Given current demand for corporate bonds and the desire to retain the PWF deposit base, the board is considering a bond issue in the near future as part of a broader wholesale funding strategy, the company announced to the NZX today.
Heartland says it has mandated Westpac and Bank of New Zealand regarding a potential retail bond issue “as a possible refinancing option.”
The PGG Wrightson Finance deal requires various shareholder, deposit holder and regulatory approvals.
Meetings of PWF depositors and bondholders were held today to vote on the proposed transfer of their investments in PWF to Heartland.
However, as expected quorums were not reached, and the meetings were adjourned until 15 August.
Meanwhile, Heartland said its liquidity is due to increase to approximately $650 million as a result of a planned expansion of its securitisation programmes by a further $100 million, in contemplation of the proposed acquisition of PWF.
The company, which is seeking a full banking license, says because it is 100% locally funded it is not experiencing the volatility occurring in offshore capital markets.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Milford's Warminger under pressure over poor fund performance
- 'Real housewife' lawyers up, accuses Devoy of bullying, defamation
- Mortgage rates have bottomed, regardless of further OCR cuts
- Where polls stand on the eve of the first US presidential debate
- John Key: I won't take a traditional role after being PM
Most listened to
- Knewe Biosystems founder Dr Graeme Coles discusses the future of his product
- Media Snapchat: NBR’s Nick Grant ponders the Human Rights Commission’s role in RHOAKL racism row
- Craigs' Mark Lister on good equities returns for the September quarter to date
- BNZ's Kymberly Martin and Massey University's David Tripe on mortgage rates.
- 'It had become far too complicated so we threw it all out the window' – Jane Wrightson on NZOA's new funding model