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Fletcher offers notes at same rates as guaranteed institutions

Fletcher offers notes at same rates as guaranteed institutions
Fletcher Building Finance has announced a public offer of NZ$100 million in unsecured and subordinated capital notes at an initial 9% interest rate. The offer was made to raise money to fund the general business operations of the Fletcher Building Group, including the retirement of debt. The 9% interest rate, although higher than those offered by banks, sits well within rates being offered by financial institutions that are covered by the New Zealand Deposit Guarantee Scheme. For full term deposit rates tables see here. One advantage of these notes is that they will be tradable through the NZX markets. Two capital notes series are being offered: One expiring in May 2014 and the other in May 2016. The minimum holding in respect of each series of the capital notes is $5,000 and in multiples of $1,000 thereafter.

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