South Canterbury Finance has opened its offering of bonds maturing on October 8, 2010 with an interest rate of 8%, saying it aims to raise up to NZ$100 million through the offer managed by Forsyth Barr.

The maturity of the bond could be extended by up to a year if the Government's Deposit Guarantee Scheme is extended beyond its original 2 year period. South Canterbury Finance has a guarantee under the scheme.

The offer of an initial NZ$75 million of secured bonds can be topped up by a further NZ$25 million and is due to close on January 30.

South Canterbury Finance CFO Graeme Brown said bond issue would be used to finance further lending and to further diversify funding sources.

This bond issue follows a NZ$125 million issue in May that offered 10.5%. South Canterbury Financ said it had about NZ$180 million of cash on hand and a further NZ$150 million of bank lending facilities to call on if necessary.