Dual currency offer attractive
MFS says its dual currency offer is proving attractive to investors, just as a competitor is about to enter the market.
Friday, October 28th 2005, 10:17AM
MFS Pacific Finance says its $300 million dual currency offer is being "overwhelmed by savvy investors looking to invest in the strength of the Australian economy."
Since launching in early August the offer of secured debenture stock and notes has raised more than $22.5 million, with average inflows of $1.8 million per week.
Currently MFS is the main player in this niche space, but a similar offer is expected from St Laurence soon.
St Laurence has indicated it is on the verge of rolling out a dual currency offer, as well as one which is a play on the US dollar along with another proportionate ownership scheme.
The MFS offer initially targeted New Zealand residents with Australian dollar savings or cash deposits who wanted to invest in an investment which allowed them to diversify their portfolio into the growth of the Australian economy.
However, MFS Pacific Finance chief executive Nigel Lane said the company had received demand from investors wanting to convert New Zealand dollars into Australian dollars to take advantage of the investment vehicle.
“The increasing uncertainty surrounding the New Zealand economy is prompting savvy investors to keep their investments offshore and further investigate options for investing funds in the strength of the Australian economy.”
Deposits are predominantly invested in loans to various entities involved in the Australian property market through opportunities sourced from MFS Pacific Finance’s ASX-listed parent company MFS Limited.
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