Wellington, Dec 3 NZPA - South Canterbury Finance is in a "very sound liquidity position" as it launches a secured bond offer of up to $100 million, company chief financial officer Graeme Brown says.

The company today announced the opening of the offer, of which up to $25m will be for oversubcriptions.

South Canterbury is one of only 11 finance companies included in a report on the sector published yesterday unaffected by receivership, moratorium or restructuring.

That compared with 29 companies the previous year and 38 in 2006, the McDouall Stuart report said.

Today, Mr Brown said the bond offer would help South Canterbury finance its lending activities, further diversify its funding sources and provide further liquidity.

It was bringing the offer to the market on the back of a $125m secured bond offer in May.

"With approximately $180m of cash on deposit as at 30 September 2008, and an additional $150m of undrawn banking facilities available to the company, the company is in a very sound liquidity position," Mr Brown said.

South Canterbury has a guarantee under the retail deposit guarantee scheme.

Interest on the bonds launched today will be 8 percent a year.

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