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Fisher & Paykel Finance may issue bonds

Fisher & Paykel Finance is considering a number of options to diversify its funding base, including the possibility of issuing a retail bond.

Wednesday, 27 July 2011

by Jenny Ruth

"It's one of a number of things we're looking at," says managing director Alistair Macfarlane.

"Retail bonds provide another avenue of funding for us. At the moment, we're not actively pursuing it but it's certainly an option."

Funding diversification has always been one of the company's strategies, he says. "How we do that an how we execute that is up for discussion."

At March 31, debentures accounted for 24% of the company's funding with wholesale or bank funding accounting for 40% and the other 26% from securitisation.

The reinvestment rate of its debenture book was running at about 60%.

Also at March 31, the company had liquidity of $205 million, enough to cover 146% of the debenture book. In late June, the company withdrew from the government's retail deposit guarantee scheme six months earlier than it had to.

Macfarlane says the company is also considering widening its bank borrowing beyond the banks it currently deals with and looking at "how we might use our securitisation structure more efficiently than how we currently use it."

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