D.F.C. raised $23M on U.S. market

Press, 6 December 1979, Page 25

D.F.C. raised $23M on U.S. market

The Development Finance Corporation of New Zealand, which was the first foreign financial institution to issue commercial paper (negotiable documents) in the United States market, in the six months to September 30, issued SUS23.IM worth. The Corporation plans to issue up to 540.0 M of commercial paper. Proceeds from the sale of D.F.C. notes have been used to refinance several bank facilities, and to finance its short-term working capital requirements. “Although United States dollar rates have firmed in this period, D.F.C.’s decision to approach the United States commercial paper market has been justified, because of its comparatively lower short term rates,” the directors say.

“In line with the corporation’s policy to increase and broaden its local funding base, D.F.C. has recently

made a private placement of I SIO.OM floating rate certi- i ficates of deposit. On the dose of this issue, D.F.C. 1 will be making a secondary i market in these fully 1 negotiable five year I securities,” they say. i In the six months to 1 September 30, D.F.C. i .approved 206 projects in New I Zealand, with a total value of 559.4 M. This compares i with 164 projects, valued at i

522.8 M for the same period in 1978. The unaudited net profit for the half-year was ahead 1.5 per cent at $909,430, but tax provision was $288,204 higher at $630,204, and associated companies contributed a loss of $114,000, compared with a profit of $192,000. The Small Business Agency dealt with 1892 enquiries, and completed 1554 cases.