F&P Finance relying more on cheaper bank loans

Average reinvestment rates rose to around 71% during the period April-July 2010 from around 65% average in the full year period to March 2010. The company was accepted into the extended guarantee scheme on May 18.

The increase in debenture investment should help the company reduce its reliance on bank loans though the latter works as a much cheaper option for the finance company.

In the year to March, according to its recently released annual report, F&P borrowed more from a syndicated banking facility of $335 million it has from three banks, increasing the amount to $176 million from $122 million the year before.

Debentures during the same period fell from $203 million to $157 million.