Deposit rates news briefs

Fidelity bond will make first payment, Fonterra resets note rate, The Hawk collects on National Finance 2000

Monday, 16 July 2007

Earlier the company said it may not make the first payment. However now it says, "recent performance has seen the fund tracking well and that the subordinated debt holder (Fidelity Life), capital guarantee provider (Westpac) and trustee (Guardian Trust) have therefore agreed not to suspend the payment of interest."

" The first coupon interest will be paid on its due date." Also early bird interest will also be paid on 16 July to the original subscribers.

Fonterra resets note rate
Fonterra has reset, and increased, the interest rate on the $35 million worth of perpetual capital notes it has on issue.

Under the terms of the issue the rate is periodically reset, with the new rate based on prevailing market pricing. The rate has increased from 8.62% to 9.37%.

The new rate is the current base rate plus a margin based on the capital notes' credit rating. The new rate is valid until the next reset date of July 10, 2008, unless there is a change in the credit rating of the capital notes in the interim.

The Hawk collects on National Finance 2000
Former Equiticorp boss Allan Hawkins and his listed company, Cynotech, are making good progress collecting the loan book of collapsed consumer finance company National Finance 2000.

Cynotech last week reported its after-tax profit for the half-year to June was $1.04 million, 382 per cent higher than for the same period a year ago. Hawkins says that about half the current profit had come from the loan book.

National Finance 2000 went into receivership in May last year, owing more than 2000 investors $25.5 million. Its loan book, which had a face value of about $23 million, but was sold by the receivers to Cynotech in October for $7.7 million.

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