Deposit Scheme: PGG Wrightson Finance to opt in
16 October 2008 Media Release
PGG Wrightson Finance to opt in to Deposit Guarantee Scheme
PGG Wrightson Finance Limited has advised the New Zealand Treasury of its intention to opt into the Crown Deposit Guarantee Scheme as announced by the Government earlier this week.
PGG Wrightson Finance is a specialty provider to the rural sector, with a comprehensive range of farm finance and banking services tailored to the needs of farmers. It has a high-quality loan portfolio with a history of low bad debt levels, and has experienced strong growth in recent years.
The company’s financial strength and product offering have produced growing support from investors, with its term deposit base increasing by $25 million over the past three months to $210 million. It enjoyed a strong reinvestment rate of 83 percent in September and has averaged 80 percent since July 2007, against a background of local and international financial volatility.
Mark Darrow, Director Financial Services said: “We are very happy with the strength of our balance sheet and the support of our investors, but we recognise that the Deposit Guarantee Scheme will provide them with an additional level of comfort given the uncertainty in global financial markets. We have therefore started the process of applying to enter into a Deed of Guarantee with the Crown.”
About PGG Wrightson Finance
PGG Wrightson Finance Limited is a fully-owned subsidiary of PGG Wrightson Limited. It is a specialty lender to the farming sector, with a primary focus on the dairying, arable, and sheep and beef sectors. Its finance services include seasonal finance, term loans, livestock finance, grain finance, farm input finance and equipment finance. The company also offers on-call and secured deposit investments to the public.
Secured Deposits are secured by a first ranking charge (subject to prior permitted charges and payments given priority by legislation) over all assets of PGG Wrightson Finance Limited. Rural Saver deposits are unsecured and rank equally with all unsecured creditors of PGG Wrightson Finance Limited. PGG Wrightson Limited does not guarantee the securities offered by PGG Wrightson Finance Limited. An Investment Statement and Application Form is available by calling PGG Wrightson Finance Limited on 0800 144 346.