Wednesday, November 26, 2008

South Canterbury Finance still going strong

The other morning, while driving down Broadway Avenue in Palmerston North, I noticed an office of South Canterbury Finance — the second-largest finance company in New Zealand, and one that has flourished during the recent turmoil in the finance sector.

I hadn't realized there was an office of the 80-year-old company in town, and made a mental note of its location. I thought I might invest some money there, after my deposits at Kiwibank reach the target total of $40,000.

"But is South Canterbury Finance covered by the New Zealand retail deposit guarantee scheme?" I wondered. In these uncertain times, I don't think I would put any money into an institution that wasn't covered by the scheme.

My question was answered by Aaron Lim in today's issue of Businessday. South Canterbury is, indeed, covered. Furthermore, it is raising as much as $100 million through a new offer of bonds that will return 8 percent a year — more than any bank is paying at present — until the maturity date of October 8, 2010.

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