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.