St Laurence launches $50m bond offer

Wellington investment group St Laurence today announced a $50 million bond offer.

St Laurence managing director Kevin Podmore said the proceeds of the bond offer would be used to fund growth in the group's property investments and to repay some existing debenture stock.

St Laurence subsidiary -- St Laurence Property & Finance Ltd -- will open the offer on Thursday. It will close six weeks later on May 20 or earlier if oversubscribed. St Laurence has reserved the right to accept over-subscriptions of up to $20 million.

The bonds will have a term of just over five years maturing on July 15, 2010.

The interest rate is to be set this week and Mr Podmore said investors would have a choice between " an attractive fixed interest rate and a floating rate, which will pay a margin over the 90 bank bill rate and will be reset quarterly".

Interest will be paid quarterly

The minimum investment in the offer is $5000 and St Laurence has applied to list the bonds on the NZX's NZDX market.

- NZPA