$20M fund to Renouf

Press, 9 January 1986, Page 18

$20M fund to Renouf

PA Wellington Renouf Corporation, Ltd, is arranging its first major offshore funding through a SUS2OM Euronote issue leadmanaged by Citicorp Investment Bank (Singapore), Ltd. The Singapore managing director of Citicorp Investment Bank, Mr Jerome Rowley, said a special feature of the Euronote facility was a put option provided by National Australia Bank, Ltd. This assured investors of the notes being re-purchased at par upon maturity. Funds raised through the facility would be used as working capital of the Renouf group. The group’s operations include investment banking, corporate finance, equity investment, money market trading, property investments and development, futures trading and venture capital funding. Under the facility Renouf will be able to issue up to SUS2O million in notes on a revolving basis. The notes will be sold by Renouf to Citicorp New Zealand, Ltd (CNZL), which will offer the notes for sale to a private tender panel formed for this purpose. The sale of notes by CNZL is underwritten by CIC Union Europeenne, International et Cie; Citicorp Investment Bank (Singapore); D G Bank, Deutsche Genossenschaftsbank; National Australia Bank; State

Bank of New South Wales; State Bank of South Australia; and Marac Hong Kong Ltd. Under the tender panel process, a selected group of major financial institutions have the right to bid competitively for the notes. The underwriting banks commit to purchase any notes not taken up by the tender panel at the underwritten margin, “This facility will bring the Renouf name to the international market with the full benefit of the National Australia Bank, Ltd, put option,” Mr Rowley said. “For investors, the notes will represent a very high quality short-term investment.” In addition to the underwriting banks, the initial tender panel will consist of Bank America Capital Markets Group, BT Asia Ltd, Commerzbank (South East Asia) Ltd, Daiwa Singapore Ltd, Mitsubishi Trust Finance (Asia) Ltd, Yokohama Asia Ltd. The Renouf notes will be issued for terms of one, three or six months, and be denominated in U.S. dollars. “The notes will, it is expected, trade in the market at a margin around the London or Singapore Interbank offered rate (Libor or Sibor), the common rate for this type of bank backed paper,” Mr Rowley said.