About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Saturday, January 18th, 9:24PM
Latest Headlines

Money @ Work: PGG Wrightson Finance secured bonds

This week's Money @ Work looks at PGG Wrightson Finance's current bond offer.

Thursday, November 27th 2008, 2:40PM
What is it called and what sort of savings product is it?
PGG Wrightson Finance secured bonds.

Who is the company behind it?
PGG Wrightson Finance is a subsidiary of rural supply company PGG Wrightson. It is looking to raise up to $100 million through this offer. PGG is listed on the stock exchange (NZX: PGW) and is the largest agricultural servicing firm in New Zealand. In the year to March 31, it made a profit of $8.7 million and had assets of $507.5 million.

PGG Wrightson Finance has a deposit guarantee under the government’s new scheme.

Who is the target market?

People wanting a finance company investment that is less risky than debentures, and is liquid.

What return does it offer?
The minimum rate is 8.25%. However the final rate will be set on December 22 at 2.25% above the swap rate.

When was it launched?
November 19. It closes on December 22.

What other products is it like or is it competing with?
With the deposit guarantee scheme many of the fixed income products are all competing against each other now. This offer is similar to bond offers made in the past year by Marac and South Canterbury Finance.

Is it long term, short term or medium term?
It’s really a short-medium term investment with a maturity date in 2010. However, the company has the ability to extend the maturity period another year to 2011.

What is the unique selling point?
The offer gives investors access to a finance company involved in New Zealand’s rural sector, rather than property. Also bonds have some benefits over secured debentures, such as being tradable.

How strong a stomach do you need for it?
Having the guarantee lessens the risk on this investment, hence the offer’s rate is lower than what similar bonds have paid previously.

What's the hitch?
The two worst things that could happen are that New Zealand’s farming sector could turn to custard, and that the company looses its guarantee. Also it’s worth noting that the rate offered is less that what can be achieved against debentures.

« Who has got a guarantee?Marac launches high interest account »

Special Offers

Commenting is closed



Printable version  


Email to a friend
Today's Best Bank Rates
Rabobank 1.75  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Partners Life criticises Vitality
    “bay broker good points but I get the point about premiums increasing when sick. I have Vitality personally and I have qualified...”
    2 days ago by taka dan
  • Don't hold your breath for life insurance reform
    “That's a good observation from @JPHale there. "2% of sales" has even less meaning when you don't know if it's 2% of premiums...”
    2 days ago by Denis
  • Partners Life criticises Vitality
    “I've added Vitaltiy to a number of clients' new covers. I have also sold AIA cover without it. As with all advice it is...”
    2 days ago by BayBroker
  • Don't hold your breath for life insurance reform
    “Having read both the article and the comments I can only agree with what has been said in the comments. Further, I am...”
    2 days ago by BayBroker
  • David Whyte's 5 predictions for 2020
    “@ number 2: LOL - don't hold your breath. And besides, even if they did do it, if someone needs it they should probably already...”
    3 days ago by All hat no cattle
Subscribe Now

Deposit Rates newsletter

Previous News


Most Commented On
News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%


About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com