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
Most listened to
- Listen to the week’s top business news on NBR Radio’s week in review
- Prime Minister John Key would be better off doing the things he tells people he will do, says Matthew Hooton
- Paula Bennett is “thrilled” by the ban on three Wicked Camper vans, says Rodney Hide
- Michael Wigley says Uber may have inadvertently opened itself to action under competition law
- Tim Hunter on the Z Energy-Chevron deal