B.N.Z. Finance to issue debentures

Press, Volume CXIV, Issue 33612, 14 August 1974, Page 19

B.N.Z. Finance to issue debentures

iVcu Zealand Freis ts-m. iiirmnl

WELLINGTON H.N.Z. Finance. Ltd, which has in tie past raised its funds mainly through unsecured deposits, is drawing up a tindeed for a debenture issue.

Under the deed first-rank-ing debenture, security N intended to be given for a I borrowings after Max 23. 1974. “So far as earlier depositors are concerned, their position will be undistut )< d

but they, on establishment of the trust deed. wi:i be declared to have been given identical securitv and the relevant aggregate am -unt of debenture stock will be held in trust tor their benefit drawn," the chairman (Mi D. A. I . Crombie) said at the annua! meeting. \ . ture is being prepared and it is expected to be avaiiabk soon. "The board is hopeful tlw. the response to the forth coming issue will serve to re-establish financing ability and t ■ ease or lem.A-. ’ inhibitions to which refer ence was made m the annual report. "Given such a situation t max reasonably be expected that the level of profitability established during the pa-i two financial years will be maintained. "There are ample opportu nities for sound financing by your company whose pol l \ will continue to be to assist projects of which the pro ductive or performance chai acter can be seen to be clearly in the national inter est.” said Mr Crombie. The amendment to the Interest on Deposits Regu lations in May had placed the company at a disadvantage in comparison with financial institutions which customarily borrow funds by means of a prospectus and give security in relation to an established trust deed. Poor returns The Australian National Travel Association, worried by a slackening in accommodation demand, has asked that the Industries Assistance Commission study the travel trade. A.N.T.A. says that the industry is threatened, and that assistance from the Australian Government is necessary and [urgent. In 1969-70, hotel and motel groups returned 6.9 per cent on shareholders’ funds. Last year they returned only 1.8 per cent, and the return for the 197475 year might be worse.