KEY POINTS:
PGG Wrightson Finance today distanced itself from the rest of the finance company sector by saying it has a reinvestment rate of 80 per cent.
The statement comes as finance companies generally struggle to attract new retail funding and get people to keep money with them when term deposits mature in the wake of collapses in the sector.
PGG Wrightson, which describes itself as a "specialist in rural lending" said it has lifted term deposits by a net 25 per cent in the 12 months ended June 30. Total retail funding grew more than $30 million.
"We have investor support because of our clear differentiation. Investing in secured lending for farming purposes is a strong proposition, with the rural economy generally well-positioned for future performance," Michael Thomas, PGG Wrightson Group general manager financial services, said.
"This is in contrast with the conditions that many other finance businesses are currently facing," he said.
PGG Wrightson Finance had a diversified funding base which included deposits, bonds, parent company equity and the support of three major banks.
The company's three major banks had recently undertaken robust reviews of the company.
PGG Wrightson Finance Ltd is a fully owned by PGG Wrightson Ltd.
- NZPA
