Viaduct Capital announced it had cut its rates for most of its first ranking secured term deposits. Viaduct issued a prospectus on March 3 with an offer of NZ$50 million in first ranking secured term deposits. Viaduct is the new name of Priority Finance after the Christchurch-based finance company was bought by former Blue-Chip CEO Nick Wevers in February.

Priority Finance had NZ$3.3 million worth of loans and advances as at September 30, 2008, of which NZ$2.1 million were overdue and NZ$3.1 million were due to be repaid by March 31, 2009. It was given a government guarantee, which has been passed on to Viaduct Capital.

Viaduct Capital said in its prospectus it planned to buy property loans at discounts to face value and lending to businesses on a short-term basis.

Here are the new rates and cuts from former rates:

3-month: down 150 basis points to 4.50%
6-month: down 200 basis points to 4.50%
9-months: down 225 basis points to 4.50%
12-months: down 200 basis points to 5%
18-months: down 150 basis points to 5.50%
2-years: down 100 basis points to 6.50%

Viaduct's 3, 4 and 5-year rates remained at 7.50%.

Here are links to our short term term-deposit page and long term term-deposit page.