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Two fin coys that pulled out of govt guarantee yet to produce prospectuses; Marac looks to late January for non-guaranteed term deposits; Equitable offer closing; South Canterbury's five month offer.  

Tuesday, January 12th 2010, 9:02AM

Two fin coys that pulled out of govt guarantee yet to produce prospectuses
Two of the six financial institutions that pulled out of the government's retail deposit guarantee have yet to produce new prospectuses to attract new funds.

Gisborne-based Rockforte Finance and FMG Finance, which stopped lending and investment from new customers in March last year, are the only two companies that have not lodged new prospectuses with the Companies Office. Neither company was available for comment.

Asset Finance, Christchurch Emergency Services Credit Union, Aotearoa Credit Union and Mutual Credit Finance have all lodged new prospectuses to attract deposits that are not covered by the government's guarantee.

Marac looks to late January for non-guaranteed term deposits
Marac expects to offer non-guaranteed term deposits from January 20 this year after it announced it would be offering the amended terms just before Christmas last year.

PGG Wrightson was the first finance company to offer non-guarnateed securities and it is offering a straight 1% premium across terms from call to two years, then a lower premium. (See graph here)

Marac retail investment manager Andrew Ford indicated the company would take a different approach and may offer premiums of more than 1% for some maturities.

Equitable offer closing
Equitable is closing its Series 8 and 9 offers on Friday. The Series 7 offer has a fixed maturity date of October 11, and is paying 7%. The Series 9 offer is for 24 months with a rate of 8.50%.

South Canterbury's five month offer
South Canterbury Finance have rolled out a five months secured debenture "special offer" paying 7%. Interest will be paid monthly, although investments can be made under quarterly or compounding interest payments.

However the company is not offering its normal 50 basis point rate increase for reinvestments.

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