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Marac Bond Issue Raises $104.2m

Fuseworks Media
Fuseworks Media

Wellington, July 23 NZPA - Marac Finance has raised $104.2 million through a secured bond issue.

The Pyne Gould Corporation subsidiary had offered $100m worth of five year, fixed rate secured bonds with a further $25m set aside for over-subscriptions.

Marac managing director Brian Jolliffe said broader market conditions during the offer period were not favourable, with weakness in equity markets, further deterioration in the New Zealand economy and some non-diversified property lending companies becoming distressed.

"Given these circumstances we see raising more than our $100m target through the secured bond as being a strong vote of confidence in Marac's business," he said.

Proceeds from the bond would bring total liquidity to more than $250m.

They would help Marac keep servicing its wide range of customers, with lending to thousands of small to medium sized businesses, Mr Jolliffe said.

The bonds, which have a five-year fixed interest rate of 10.5 percent, will be quoted on the NZDX tomorrow.

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