News Round Up

Household wealth keeps growing, Two new bond offers, Sentinel happy, Ginseng offer pulled (for now).

Monday, September 5th 2005, 6:42AM

Contrary to expectations, the net worth of households is continuing to grow rapidly on the back of a further increase in house prices and a strong run by the New Zealand sharemarket.

The Spicers Household Savings Indicators show that the total net wealth of households rose an estimated 4%, or $18.1 billion, in the June quarter. [MORE]

New bond offer 1
Listed infrastructure company Infratil has opened two new series of its popular bond issues. They are offering rates of between 7.75% pa and 8.5%. Bonds maturing in November 2012 are paying 7.75% and 2020 bonds are paying 8.5%.

Bond offer 2
Meanwhile Powerco is looking to raise $180 million through a bond issue. The bonds are to be issued in two tranches maturing in 2012 and 2017. The bonds will benefit from a financial guarantee provided by XL Capital Assurance.

Sentinel happy
Sentinel says recent publicity is helping to grow interest in the home equity release market.

The company, which claims 94% of market in New Zealand, says it has settled loans totalling more than $57 million in its first 18 months. It says the main use for equity released through its loans is used for home maintenance.

Strategic profit up
Strategic Finance has reported an audited net profit after tax of $25.5 million for the year ending June 30. This is an increase of 35% on the 2004-year result.

Strategic chief executive Jock Hobbs said the company had experienced continued growth in its core operations of property finance. Non-property lending, primarily motor vehicle lending, performed well while fee income from advisory and management services to the property and corporate sectors contributed strongly to profit growth.

Ginseng prospectus pulled
An investment offer in New Zealand's fledgling ginseng industry is to be re-issued under a new prospectus. Ginseng NZ director Mal Singh said the offer had been withdrawn on legal advice that the departure of a director represented a significant material change.

Brian Sage was removed as managing director of Ginseng New Zealand following a breakdown in relations between Sage and other directors over issues of governance and the future direction of the company.

A contract between Brian Sage Ltd and Ginseng NZ had also been terminated.