Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Elders Finance Announces Capital Bond Issue

Elders Finance Announces Capital Bond Issue

Elders Finance Ltd is launching a Capital Bond issue that will raise up to $20 million to provide additional strategic choices for the business' capital structure and assist with satisfying its clients borrowing demands.

The bonds will offer interest rates ranging from 8.95%p.a.-9.35%p.a. for terms of three-five years. There are three maturities being offered:

Term Rate of Return

36 months 8.95%p.a.

48 months 9.35%p.a.

60 months 9.35%p.a.

The minimum investment is $1,000, with rate quoted per annum and subject to change.

Elders Finance chairman Mark Hotchin said the bonds are being offered in response to demand from existing investors.

"We are experiencing strong demand for securities that offer a competitive rate of return, and we are able to give investors the opportunity to contribute to the growth of Elders Finance," Mr Hotchin said.

Elders Finance, which is owned by Hanover Group Ltd, is facing increased demand for financial services from a wide range of New Zealand's growing industries. Elders Finance recently reported a record $19.6 million after tax operating profit for the 2003 financial year. Total assets increased nearly 18% to $578.5 million while total operating revenue was up more than 27% to $73.5 million.

"We continue to go from strength to strength and have a growing demand for the financial services provided by Elders Finance," Mr. Hotchin said.

The Capital Bonds offer a sound return, as well as an excellent opportunity for investors to take part in the success of Elders Finance.

In the past 18 years Elders has helped finance business throughout the country, ranging in industries from agriculture, forestry and fishing, accommodation, tourism, health, retail and consumer, commercial and residential property development and investment, and financial and insurance.

About the Elders Finance Capital Bonds

Elders Finance Capital Bonds are a form of term deposit that deliver a competitive rate of return, ranking in priority behind other creditors of the issuer, but ahead of shareholders.

A Capital Bond typically appeals to investors looking for a more competitive return on their investment over a fixed period of time.

Interest on the Capital Bonds is payable quarterly, which is appealing for those who want to plan for the future with constant quarterly inflows.

The minimum application for a Capital Bond is only $1,000.

About Hanover Group

Hanover Group is the holding company for a diversified financial services group, which includes Elders Finance Ltd, Nationwide Finance Ltd, United Finance Ltd, FAI Finance Ltd, Leasing Solutions Ltd, Elders Home Loans Ltd, Australian Finance Holdings Ltd, Hanover Securities Ltd and Axis Properties Ltd.

Elders Finance Ltd is the principal lending arm of the group and provides mainly short-term finance, revolving credit, bridging loans and fee-based first and second mortgage finance.

Hanover Group has total assets in excess of $1 billion and shareholders funds of more than $200 million.

It operates across a broad range of industries including Agriculture, forestry, tourism, health, retail, property development and investment, plant and equipment, office technology and telecommunications.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news