Ann: GENERAL: GFL: GFNZ Announces $1.66m Funding

• Release Date: 30/01/13 10:30
• Summary: GENERAL: GFL: GFNZ Announces $1.66m Funding for its Prof Inv Product
• Price Sensitive: No
• Download Document  3.23KB

					

GFL
30/01/2013 08:30
GENERAL

REL: 0830 HRS GFNZ Group Limited

GENERAL: GFL: GFNZ Announces $1.66m Funding for its Prof Inv Product

Media Release 29 January 2013

GENEVA FINANCE ANNOUNCES SUCCESSFUL $1.66 MILLION FUNDING FOR ITS
PROFESSIONAL INVESTOR FUNDING PRODUCT

NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) has successfully
placed a further $2.075 million of new business receivables into their Prime
Asset Trust Limited funding scheme, using this security to raise a total of
$1,660 million of new debt funding from 8 professional investors. This
placement will assist Geneva in maintaining its track record of early
repaying its scheduled debt repayment programme and provide funding for the
expansion of its profitable new business model.

About Prime Asset Trust Limited scheme:
In response to a difficult funding market, Geneva developed a funding product
that offers a highly secure and high cash flow investment opportunity. The
key features of this product:

o It is only available to professional investors; ie only investors who
qualify as "eligible persons" per section 5(2CD) or section 5(2CE) of the
Securities Act 1978 may subscribe for these investments;

o The financing structure is completely independent of Geneva; ie whatever
course Geneva takes in the future, these receivables and the cash flows they
generate are exclusively for the benefit of these investors;

o Geneva retains a subordinated position of up to 20% in the receivables but
receives no cash from the investment until all investors' principal and
interest is repaid in full.

Achievements to date:
While many challenges face the company and the sector, the board's commitment
to the core strategy remains unchanged. This debt funding initiative is
another step forward and a significant achievement for Geneva, which to date
has undertaken:

o Repayment of more than $133.9 million of debt funding to investors
(including interest of 11.0% per annum to public debenture holders);
o Reduction of group operating costs by more than $29 million per annum since
October 2007;
o Acquisition of the Quest Insurance and Stellar debt collection operations
to complement core financing activities;
o Implementation of real-time online internet-based scorecards and loan
application systems for introducers;
o Restructuring of operations to allow the new business model to focus on a
market segment that offers attractive yields that carry considerably less
risk.

ends

About Geneva
Geneva is a New Zealand-owned finance company that provides finance and
financial services to the consumer credit and small to medium business
markets. Geneva commenced business on 7 October 2002. Geneva's loans are
originated through three distribution channels (Direct, Broker and Dealer),
processed by the central sales desk then administered through a national
operations centre located at Mt Wellington, Auckland.
The company borrows money by the issue of debenture stock. It also has a
banking facility with BOS International (Australia) Limited.
Geneva (GFL) is listed on the NZAX. There are 280,872,249 issued shares held
by 2,623 investors.

Alexander Communications
Kate Alexander
+64 (0)27 244 6094
[email protected]

For further information:
End CA:00232428 For:GFL    Type:GENERAL    Time:2013-01-30 08:30:19