$10 million subordinated note issue oversubscribed
Elders Finance $10 million subordinated note issue oversubscribed
Elders Finance Limited today announced it has attracted more than $10 million from fervent investors for the company's first subordinated unsecured note issue.
The investment opportunity offering 9.00% interest per annum for three years, after release on October 24th and was fully subscribed within its six week offer period and an advert campaign, which only lasted three days.
Hanover Group Chief Executive Officer, Mr Kerry Finnigan believes the reason behind the successful placement was due to the continued strong financial performance of the company, value of the Elders brand favoured by a strong customer base and the competitive returns on offer from the exceptional interest rates.
"Elders Finance has always been a proven performer for the Hanover Group with a stable and respected history but we were still astonished by how quickly funds have been deposited - this result is a huge vote of confidence from the market towards management philosophy and overall strategic company direction."
Elders Finance will use the subordinated note to support the existing high levels of equity already held by the business from $43.0 to $53.0 million.
Hanover Group Chairman, Mr Mark Hotchin adds; "The proceeds of this offering will further enhance both the strong equity position and balance sheet of Elders Finance - giving our investors even more confidence in the significant future planned ahead for the company."
than twelve months, Elders Finance's asset base has
substantially grown from $300 million to $440 million and
the company is a member of Hanover Group, New Zealand's
largest privately owned financial services group*.