Intention to offer up to $100 mil Secured Bonds

MARAC announces its intention to offer up to $100 million Secured Bonds

9 June 2008

The Board of MARAC Finance Limited ("MARAC") announced today that it is considering making an offer of $100 million of first ranking, five year, fixed rate secured bonds ("Secured Bonds") with up to a further $25 million of Secured Bonds available by way of oversubscriptions (the "Offer").

The funds raised by MARAC from the issue of the Secured Bonds under this Offer will be used to finance MARAC’s ongoing lending activities and further diversify its funding sources.

Forsyth Barr Limited has been appointed Arranger and Organising Participant, and Forsyth Barr Limited and ANZ National Bank Limited have been appointed Joint Lead Managers (“Joint Lead Managers”) to the proposed Offer.

MARAC and the Joint Lead Managers reserve the right to allocate all of the Secured Bonds (including any oversubscriptions) by way of firm allocation to clients of NZX Firms, institutions and other approved intermediaries. Secured Bonds not taken up under firm allocations (if any) may be available through a public pool.

The Offer is expected to be underwritten to $100 million of Secured Bonds by Forsyth Barr Group Limited and ANZ National Bank Limited.

The interest rate payable on the Secured Bonds will be set following the closing of the Offer at the higher of:
• a minimum interest rate (expected to be set within the range of 10.25-10.50% per annum); or
• the aggregate of the prevailing five year swap rate and a margin (to be determined).

Full details of the Secured Bonds and the terms of the Offer will be set out in the Prospectus and Investment Statement in respect of the Offer that is expected to be registered in mid-June 2008.

No money is currently being sought and no applications for the Secured Bonds will be accepted or money received unless the subscriber has received an Investment Statement for the Offer.

Application has been made to Standard & Poor’s for the rating of the Secured Bonds. Application has also been made to New Zealand Exchange Limited (NZX) for permission to list the Secured Bonds. However, NZX accepts no responsibility for any statement in this advertisement.

ENDS

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