I.H.C.C. offers top rate of 12%

Press, Volume CXVI, Issue 34107, 20 March 1976, Page 18

I.H.C.C. offers top rate of 12%

In the first debenture issue to be made by a finance company associated with a major manufacturer since the mini-Budget authorised changes in interest rates, international Harvester Credit Company of X.Z., Ltd, is offering 11 per cent interest for two-year terms, and 12 per cent for three and five years.

The new issue of first ■ charge secured debenture stock is unconditional 1} gua anteed as to principal' and interest by the parent company, International Harvester Company of New Zealand, Ltd. Ihe new issue, for Sim. will be used for expansion into wholesale financing, specifically for providing floor plan facilities for new machine stock at all I.H. dealerships in New Zealand. "This expansion means that LH.C.C. will be able to offer a complete financing survice to the I.H. dealership in New Zealand,” com-

mented Mr A. .1. Dewar, director of finance for. the company. Previously, LH.C.C.. a wholly-owned subsidiary of j I.H.N.Z. has offered only traditional financing of equip-1 ment for the I.H. dealer and branch network. Equipment financed includes earthmoving machinery, heavy trucks.! tractors and agricultural equipment, all of which is' essential to the continued development of the counii v. The company has ex-1 perienced steadily me; easing I demand for its finance fac-! ilities from both dealers and customers, reports Mr Dewar. Io meet the demand the company during 1975 in t reased-its fully paid share I capital by $700,000 to sl.7m. Mr Dewar said, "LH.C.C. enjoys a very strong liquidity position with only $379,300 in debenture, stock: repayable this year. as against $6,729,483 receiv-j ables due in the same period.” During the past 2 years, I.H. ...C has received more than $5.5m in debenture funds. The last issue, offered

in March, 1975, raised subscriptions of sl.3m, and ■was tilled and closed within 2 months. Remarking on this, Mr Dev r said, "LH.C.C. debenture issues have always enjoyed popular 'demand from the investing public. We offer the best of both worlds to the investor — the competitive terms and interest rates -of a finance company backed by the additional security of the full guarantee from 1.H.N.Z.. which is one of New Zealand' oldest and most soundly established industrial companies.”