New Zealand will increase its bond sales by 55% this year as the shrinking economy erodes tax revenue, forcing the government to fund its operations via debt.

Fonterra, the world’s biggest dairy products exporter, is considering a further sale of corporate bonds in the New Zealand market after investors clamored for its last offer in February.

Tower Capital completed its bond sale with minimal over-subscriptions as the insurer and fund manager struggled to entice investors with an 8.50% interest rate.

Vector, New Zealand's No. 2 electricity and gas distributor, is weighing the sale of $150 million of five-year bonds.

MARAC Finance, the finance company owned by Pyne Gould Corp., said first-half profit fell 48% on impairment charges for bad loans and a downturn in lending.

Strategic Finance posted a first-half loss on increased provisioning and bad debts stemming from the downturn in the property and finance sectors.

Auckland City Council said it is considering the sale of up to $150 million of fixed-rate, five-year bonds this month.

South Canterbury Finance’s 8% bonds were snapped up without the need for a public pool, raising $100 million including oversubscriptions.

Tower is considering making an offer for up to $100 million of bonds, joining the throng of corporates tapping the market for better yields as interest rates slide.

Fonterra Cooperative Group, the world’s biggest exporter of dairy products, set the minimum interest rate on its six-year bond offer at 7.75%, a rate high enough to lure investors faced with waning returns from bank deposits.

Dorchester Pacific, whose main finance unit gained investor approval for its deferred repayment plan in December, will proceed with a special meeting to vote on putting the business into liquidation.

Meridian Energy is offering to sell fixed-rate notes as New Zealand’s biggest power company ramps up construction of new wind and hydroelectric plants.

The outlook on New Zealand’s AA+ foreign-currency credit rating was lowered to ‘negative’ by Standard & Poor’s (S&P) to reflect the nation’s looming current account gap and rising fiscal deficits.

Geneva Finance, the finance company that won support from investors for a debt-for-equity swap to stave off collapse, posted a first-half loss because of increased provisions for bad debts.

Strategic Finance won support from investors for a plan to pay back funds over time, allowing for the orderly sale of assets.

Strategic Finance won support from Perpetual Trust and financier BOS International for a moratorium proposal which can now be voted on by stockholders, deposit holders and subordinated note-holders