When the going gets tougher the tough get gongs

Paul Hocking says the new equity deal award recognises fair conduct. Photo / Mark Mitchell

The financial industry has not fallen in a heap despite the economic hard times, says the industry body head.

Paul Hocking, executive director of Institute of Financial Professionals (INFINZ), said even in tough times there were still a number of deals to consider for the industry's annual awards, sponsored by the Herald.

"Did we see any impact of the global financial crisis on this process? No we didn't," said Hocking.

"In fact when you look at our debt deal of the year we had 10 nominations."

This year, Equity Deal of the Year has been added to the line-up of 11 industry gongs up for grabs in just under two weeks.

Fletcher Building's $527 million equity raising backed by Goldman Sachs JBWere, Pyne Gould Corporation's $273 million equity raising organised by First NZ Capital, and the $29 million equity raising by Xero that Cameron Partners advised on, are all in the running for the award.

"You'd think coming out of a financial crisis there wouldn't be much to talk about but in fact there were a number of issues that were nominated," said Hocking. "In tough times it's a good time to test the market and your ability to raise capital.'

He said the new award aimed to recognise those doing "the right thing" when conducting a capital raising.

"When I say the right thing it's making sure all the people who are being asked to participate are getting a good deal and it's a well priced deal, no one is being left behind and the execution is done appropriately and no one is paying too much. You're basically saying 'did the company get the money it wants at a good price? Did the investors make a sound investment at a reasonable price for the risk they're taking on? Was it done in a timely and effective manner? Were the existing shareholders properly catered for?"'

Hocking said the only "inkling" of the impact of the economic climate was the Business Excellence in Treasury award, which recognises a treasury team within a major corporate. Nominees are Goodman Property Trust, Solid Energy, Auckland City Council and Transpower.

"If anything it has shown at least the treasury end of corporate New Zealand has actually responded exceedingly well," Hocking said.

AWARDS

New Zealand Herald INFINZ Industry Awards 2010
* 11 awards recognising outstanding achievement in the financial industry will be presented alongside fellowships recognising service, excellence and professionalism.
* April 28 at the Langham Hotel, Auckland.