KEY POINTS:
What is it called and what sort of savings product is it?
Quayside Holdings Perpetual Preference Shares.
Who is the company behind it?
The Bay of Plenty Regional Council, through its subsidiary company Quayside Holdings, is looking to raise up to $200 million to invest in infrastructure projects in the Bay of Plenty. Quayside is backed by the value of the council's Port of Tauranga shareholding.
Who is the target market?
Investors looking for a reasonably secure investment paying a good interest rate.
What return does it offer?
The return has not been set yet, but it is expected to be in the 9.45 per cent to 9.55 per cent range. The rate will be set tomorrow.
When was it launched?
February 4.
What other products is it like or is it competing with?
This is yet another listed debt offering. It is up against all types of fixed interest investments, including finance company debentures.
Is it long term, short term or medium term?
These are perpetual securities, that is they don't have a maturity date. However, they suit medium to long-term investment timeframes.
What is the product's unique selling point?
The ability to invest in some local infrastructure projects and earn a healthy return.
How strong a stomach do you need for it?
Medium. While it is a fixed-interest investment in nature, the returns will be determined by the projects the company invests in.
What's the hitch?
As they are perpetual securities you need to rely on a secondary market to sell your holding, rather than wait for the issuer to redeem them. A secondary market will be available.
www.sharechat.co.nz
