Heartland considers corporate bond issue
Heartland says it has sufficient cash on hand to repay the about $92 million of PGG Wrightson Finance (PWF) NZDZ-listed bonds maturing in October, should it be successful in taking over PWF.
However, current demand for corporate bonds and its desire to retain the PWF deposit base has led it to consider a bond issue as part of its broader wholesale funding strategy.
Meetings of PGG Wrightson Finance bondholders on Monday to vote on Heartland taking over their bonds were adjourned for lack of a quorum, as expected, until August 15. PWF says of the votes received so far, 96.5% are in favour of the Heartland takeover.
Heartland says its liquidity is set to rise to a record $650 million, more than a third of total retail deposits. Its reinvestment rate in July was 75% and new deposits during July were at record levels, it says.
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