DFC doubles loan investment

Press, 25 November 1982, Page 25

DFC doubles loan investment

PA . Wellington Development Finance Corporation lending approvals continued at record levels in the six months to September 30, the corporation said in a statement yesterday. The total value of investment approvals. SI63M was more than double that of the same period last year. S77M. In the six months to September. the corporation approved 533 projects, compared with 560 in the first half of last year.

The chairman of the corporation, Mr John Mowbray, said assistance for medium and large projects approved by the Corporate Finance Division totalled SI2BM for

90 projects, compared with SS4M for 85 projects last year. ‘ For small businesses, the DFC approved 443 projects with a value of ?35M, compared with 475 projects worth S23M the previous year.” Assistance for small businesses includes S2.IM in venture capital investments, S2.BM in export suspensory loans, and SI.IM in regional development suspensory loans. The DFC’s small business development division approved assistance of $900,000 to 39 projects under the applied technology programme and disbursed ?7.8M for 2201 new jobs through the

Government's job creation suspensory loan scheme. The Small Business Agency provided 27 loan guarantees worth $BOO,OOO and handled 2530 management counselling and advice With approval of SS7M for 40 projects in the period, the energy sector was for the first time the largest area of investment. Finance arranged overseas for three major projects contributed SS4M of approvals to the sector, the corporation said. Manufacturing was the second largest sector for DFC approvals with S3SM for 280 projects. other major sector ap-

provals include SI9M for 94 projects in horticulture and agriculture. $11.2M for 47 tourism developments and $7.5M for forest industry projects. "In their last annual report, DFC’s directors foreshadowed funding difficulties for this year,” Mr Mowbray said.

"Securing appropriate funds was a significant challenge in the first half of this year, and the corporation has introduced some restrictions on its lending. “New Zealand dollar funding has been a major problem, and ‘offshore’ financing is being provided where this is suitable for a project. “A current issue of DFC

call bonds, designed for the smaller investor, together with instruments in the wholesale market, will assist the DFC to raise suitable New Zealand dollar funds," he said. “Given difficult international economic conditions and the tight domestic credit situation it is prudent for DFC to scrutinise applications for assistance with more than usual care at the present time,” Mr Mowbray said.

The audited operating profit was $3,180,000 after providing $1,226,000 for taxation. For the corresponding period of 1981, the profit was $2,984,000 with taxation of $1,880,000.