KEY POINTS:
What is it called and what sort of savings product is it?
Viking Capital Bonds are fixed investment options.
What is the company behind it?
Viking Capital is a subsidiary of NZAX-listed Viking. This is the company run by former Dorchester chief executive and founder Brent King, and other ex-Dorchester people. Viking aims to buy companies that have been undervalued, and for which there is scope to increase their value through restructuring and rationalisation. The offer was recently announced to the NZX, however Viking is not actively promoting it. The money raised will be used to fund investments when they are made.
Who is the target market?
In this market the offer is likely to appeal to followers of King and his team.
What return does it offer?
Viking is looking to pay 12 per cent annually with the interest paid quarterly. This rate is whether the interest is compounded or paid directly.
When was it launched?
April 29.
What other products is it like or is it competing with?
This is yet another offer in what is already a very crowded fixed-interest market.
Is it long term, short term or medium term?
Viking is offering one-, two- and three-year terms. What is the unique selling point of the bonds?
This offer doesn't have a lot of distinctive investment features. Rather it appeals to people who want to back King and co, and their ability to pick undervalued companies.
How strong a stomach do you need for it?
Strong, because this is a pretty speculative offer.
What's the hitch?
Investors don't know what their money will be used for, other than to help fund investment opportunities put to the company by King and other personnel available to the company. The offer isn't going to be listed and is not portfolio investment entity compliant.
