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MARAC To Accept Oversubscriptions In Bond Offer

MARAC To Accept Oversubscriptions In Secured Bond Offer

7 July 2008

MARAC Finance Limited (“MARAC”) is pleased to announce that, following robust and widespread support from both intermediaries and investors for its inaugural offer ("Offer") of first ranking* secured bonds ("Secured Bonds"), it will be accepting oversubscriptions of up to an additional $25 million of Secured Bonds. Accordingly, the maximum amount of Secured Bonds under the Offer will be $125 million.

MARAC’s Chairman Sam Maling said "MARAC is delighted with the support for the Offer. We have secured firm and reserved allocations of greater than $100 million of Secured Bonds”.

Maling added that “the level of support for the Offer is an endorsement of the quality of MARAC and its business. This quality is also reflected in our recent market update, which highlights the Company’s excellent liquidity, healthy reinvestment rates, robust new investment levels and sound asset quality”.

The Secured Bonds have been rated BBB- (Stable) by Standard & Poor's, which is consistent with MARAC’s rating of BBB- (Stable), and is a rating that is recognised by the international investment community as ‘investment grade’.

Interest will be payable on the Secured Bonds at the higher of 10.50% per annum or a margin of 2.75% above the five-year swap rate and will be set following the closing of the Offer. The minimum investment amount is $5,000.

Forsyth Barr Limited (“Forsyth Barr”) has been appointed Arranger and Organising Participant, and Forsyth Barr and ANZ National Bank Limited have been appointed Joint Lead Managers to the Offer. The Offer is underwritten to $100 million by Forsyth Barr Group Limited and ANZ National Bank Limited.

Full details of MARAC’s Secured Bonds and the terms of the Offer are set out in the combined Investment Statement and Prospectus, dated 18 June 2008, which can be found online at MARAC’s website, www.marac.co.nz.

The Offer is due to close on 18 July 2008.


* Subject to permitted prior charges (currently none) and claims given priority by legislation.
** Application has been made by MARAC Finance Limited for permission to list the securities and all requirements of New Zealand Exchange Limited (“NZX”) relating thereto that can be complied with on or before the date of distribution of this advertisement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement.


ENDS

About MARAC Finance Limited

MARAC Finance Limited is a wholly New Zealand owned and operated finance company that has been in business for more than 55 years, and today is one of the largest and most successful finance companies in the country. The company is owned by Pyne Gould Corporation Limited (“PGC”), a NZX listed company that has a history stretching back more than 150 years. PGC does not guarantee the Offer or the Secured Bonds.

MARAC’s lending is well spread, both geographically and over a wide range of business sectors including commercial, consumer and property. MARAC has no related party lending and does not lend overseas.

MARAC is funded through retail debentures, committed bank facilities from five major New Zealand banks and a securitisation programme ensuring a diverse funding base. The Secured Bond will add to this diversity.

MARAC has a BBB- (Stable) credit rating from Standard & Poor’s. This rating is recognised by the international investment community as ‘investment grade’.

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