by Jenny Ruth
Heartland says it has sufficient cash on hand to repay the about $92 million of PGG Wrightson Finance (PWF) NZDZ-listed bonds maturing in October, should it be successful in taking over PWF.
However, current demand for corporate bonds and its desire to retain the PWF deposit base has led it to consider a bond issue as part of its broader wholesale funding strategy.
Meetings of PGG Wrightson Finance bondholders on Monday to vote on Heartland taking over their bonds were adjourned for lack of a quorum, as expected, until August 15. PWF says of the votes received so far, 96.5% are in favour of the Heartland takeover.
Heartland says its liquidity is set to rise to a record $650 million, more than a third of total retail deposits. Its reinvestment rate in July was 75% and new deposits during July were at record levels, it says.
More than 90% of new retail deposits and about 80% of re-investments in July were either not covered by the government's retail deposit guarantee scheme or were for terms beyond the scheme's December 31 expiry, Heartland says.
Heartland will announce its annual results on Friday, August 19. It has already said it expects net profit after tax for the year ended June this year will be within its existing guidance of between $6 million and
$8 million and will include substantial one-off costs.
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