KEY POINTS:
Finance company Marac said all major banks in New Zealand supported an increase in its banking facility that will improve its liquidity.
Marac is a subsidiary of Pyne Gould Corporation. It said its retail deposit reinvestment rate is continuing to be around 65 per cent.
In an environment in which 14 finance companies have collapsed Marac has hailed its variety of funding sources and said it has greater choice in lending opportunities.
The bank facility of $480 million is an increase of $80m on existing facilities and is provided by all five major banks in New Zealand.
It is a cash advance facility, split into three equal tranches, with terms of one year, two years and three years.
"It is particularly pleasing that at this time of financial market uncertainty both globally and locally, Marac Finance continues to enjoy the support of its bankers, is able to obtain an increase in facilities of $80m, and attract the Bank of New Zealand to join our existing bankers," said chairman Sam Maling.
"This support clearly demonstrates the quality of the Marac business," he said.
Marac also has debentures of $570m and a securitisation facility of $300m.
Managing director Brian Jolliffe said the syndicated facility would be used to improve Marac's liquidity position and to enable it to continue to support its existing clients.
Inflow of new money is tighter and the company will continue to be very prudent on lending.
The new syndicated facility was jointly arranged by ANZ and Westpac.
Managing director of ANZ's Institutional, Corporate and Commercial division, Nigel Williams, said the syndicated bank loan market continued to be available for well-rated borrowers.
"We were very pleased to assist Marac to establish New Zealand's largest syndicated facility for a non-bank financial institution," he said.
- NZPA
