Dominion Finance Secures $90 million Bank Lines
CEO Supports Initiatives for Credit Rating
Dominion Finance Holdings has announced that its operating subsidiaries Dominion Finance Group (DFG) and North South
Finance (NSF) have negotiated increased Bank Lines to $90 million.
DFG - $50 million BOS (Bank of Scotland) International (Australia) Ltd
- 3 year committed line
- $5 million ASB Bank - Annual review
NSF - $20 million BOS (Bank of Scotland) International (Australia) Ltd
- 3 year committed line
- $15 million ASB Bank - Annual review
The facilities, which are secured by Security Stock to be issued by each of DFG and NSF, will rank pari passu with
ordinary Debenture Stock and have been arranged to complement the two companies’ existing debenture stock funding for
the benefit of future growth and to maintain increased liquidity levels.
Dominion Finance Holdings’ chief executive Terry Butler says in light of recent failures by two finance companies
operating in the consumer motor vehicle finance area (an area where neither DFG or NSF operate), the increased level of
support from these International Banks confirms the high regard in which the company and its subsidiaries is held.
“It was important to ensure that both operating companies were not totally reliant on money raised from private
investors through the issue of Debenture Stock. Although I am happy to report the current inflow of investment funds
continues to exceed that of the same period last year and this reflects the investor confidence in the Group and its
subsidiaries.”
Mr Butler also feels the current criticism of the finance industry is unjustified.
“A great deal of negativity has recently been levelled at the finance industry in New Zealand, and whilst much of it
comes from uninformed sources, our company continues to operate under the strict requirements of continuous disclosure
as required by the NZX.
“We would support and encourage any initiatives for an acceptable credit rating measurement system for the non-bank
finance sector in New Zealand, but would see it is as being essential that it was mandatory for all companies issuing
debt securities, based specifically on New Zealand investments. It will need to be easily understood and not confusing
to the investing public.
“There is no doubt that investors need to be vigilant in determining which finance company they should support, but in
my opinion the majority of the major finance companies are under good management,” concluded Mr Butler.
Ends