COMMERCIAL I.H. finance company to make debenture issue

Press, Volume CXI, Issue 32779, 2 December 1971, Page 19

COMMERCIAL I.H. finance company to make debenture issue

International Harvester Company of New Zealand, Ltd, the Christchurch-based manufacturer and national distributor of International construction equipment, motor trucks, farm tractors, and equipment, announced yesterday the formation of a new subsidiary, to be known as International Harvester Credit Company of New Zealand, Ltd.

The chairman and managing director (Mr W. R. Harper) said that International Harvester Credit Company had been established to provide additional finance for hire-purchase transactions, covering the increased sales volume of International products sold for the farming, forestry, construction, and transport industries through its dealer organisation, and the company’s own branch outlets throughout New Zealand.

A debenture issue would be offered to the public early in the New Year which, said Mr Harper, the company was confident would find favour with general investors as well as those who had been associated with I.H. since its

establishment in New Zealand in 1907.

Reserve Bank approval has been obtained for an issue of sl.sm, with right to accept oversubscriptions for another $500,000. A prospectus will be released after the holidays.

The issue would lie sufficient only to finance the immediate growth of International’s business, Mr Harper said. It was intended to supplement rather than displace the arrangements the company had with existing New Zealand finance companies.

I.H. New Zealand is a widely diversified company, producing tools for industry and equipment basic to the New Zealand economy. It is part of the International Harvester group of Chicago, which ranks about thirtieth in the “Fortune” list of the 500 largest United States industrial companies.

With the establishment of a finance subsidiary, I.H. New Zealand is following a pattern long established by large overseas companies, as with the parent company in the United States, and affiliated International Harvester companies in Canada, Australia, Switzerland, and Bermuda. The directors of the New Zealand finance subsidiary are Messrs W. R. Harper (chairman), P. B. Carter, A. J. Dewar, C. C. Treeby and R. A. Young. The issue will be underwritten by Daysh, Renouf, and Company, members of the Wellington Stock Exchange.