Rural Bank on market for $50M

Press, 17 May 1984, Page 24

Rural Bank on market for $50M

PA Wellington The Rural Banking and Finance Corporation announced the release of its second public issue of stock, this time seeking $5O million on the market.

Earlier in the year the bank went to the market seeking $lO million. The issue was heavily over-sub-scribed, $25 million being raised. “That first issue was most successful, the bank finding considerable support for its investment,” said the chairman, Sir Allan Wright.

“The first issue filled in a very short time and many potential investors were disappointed in not being able to participate. On this occasion it is intended that the issue will remain open as a continuing investment facility for those who want to invest in the bank and this country’s farming future,” he added.

Sir Allan said that terms for this second issue would be similar to those for the first, although the minimum amount of investment would be reduced to $5OO from

$lOOO, and the minimum term from a year to six months. The interest rate ranged from 9.25 per cent for six month call stock to a maximum of 10.75 per cent for live and seven year stock. “The stock again has the benefits of being government guaranteed, qualifying for trustee status, being exempt from stamp duty on transfers and also qualifying for institutional farm ratio investment,” Sir Allan said. Funds raised would go toward the financing of all areas of lending in the rural sector, particularly for the infrastructure needed to sustain the rapidly expanding horticultural sector.

“The commercial division has already been very active in lending funds raised by the first issue with assistance given to agriculture projects such as farm and orchard development, coolstore expansion, and provision of farm plant and this financial support has long term benefit for the industry,” said Sir Allan. The issue would go on the market today.