Wellington, June 17 NZPA - South Canterbury Finance has closed its secured bond issue, raising $125 million which included $50 million of oversubscriptions.

Strong support from across the investment sector had resulted in the offer closing fully subscribed, the company said today.

Chief executive Lachie McLeod said the secured bond issue further diversified South Canterbury's funding base and followed its 2007 $125m five-year bond issue and $US100 million ($NZ134.5 million) private placement in the United States.

Together, the three offers had raised about $375m and demonstrated South Canterbury Finance's ability to successfully raise capital despite recent volatility in financial markets, Mr McLeod said.

The interest rate for the latest secured bonds, which was fixed for a three-year term, was set on Monday at 10.5 percent.

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