While they aren't a bank in the traditional sense (ie home loans), the cost of funds is one of the great benefits they get from being a registered bank.
Printable View
While they aren't a bank in the traditional sense (ie home loans), the cost of funds is one of the great benefits they get from being a registered bank.
Plus they get Reserve Bank Supervision. Government is not happy at the thought of another South Canty Finance bale-out.
The $105 million debt. Obviously this is long term debt, which is used to balance the shorter term retail deposits of a couple of years. I expect the $100 million to be rolled over. What about giving the shareholders an option to invest in some of the $100 million?
Have been reading all recent posts. QQH has made a very valid point here, a point I had somewhat underestimated (maybe just my oversight). This is one of my more substantial holdings and I am happy with it, but this debt QQH talks about should be repaid in full before any dividends are paid. I like dividends but only if the funds can not be put to better use by the Co. They also need to be made from sustainable profits/cashflow.
I would like HNZ to be conservative and honest. That's the reason I have invested quite heavily in HNZ. Keep it up HNZ but please NO surprises.
They are a form of borrowing.They were taken out when things were not going to well,so they had to pay big interest.
As CJ posted lets just wait and see what/how they replace it.There was talk on Chris Lee site that HNZ would come to the market for another bond issue.
So over the next few weeks we can look forward to news on Marac bonds and more importantly the non-core property holding.
I expect both announcements will be very positive for shareholders.
Remember HNZ are now paying between 3 and 5% for deposits.Sparky covered this in his post No.1756 at the top of this page.
Infratil just got some bonds away at 6.85%. Heartland should be able to do cheaper than this.
Govt going to set up micobanks, great idea even though lending to the needy intuitively doesn't make sense. However there is a market and loan sharks and microbanks in other counties have low default rates. There must be a need
I reckon hnz and coop should lead the way. Put aside 1% of assets into mico lending, small loans minimal interest
Some really good social stuff for a nz bank ....make shareholders warm and fuzzy in doing good work.
Altruism in action I reckon, banks have a social responsibility too
I email jeff today and the coop guy as well with that idea