Wrightson bonds for farm finance

Wrightson plans to sell as much as $60 million of four-year and five-year bonds to expand its farm finance unit.

Wrightson Finance is offering bonds maturing on May 20, 2009, with a minimum coupon of 8.25 per cent and bond maturing on May 20, 2010, with a minimum rate of 8.5 per cent. The rates will be determined when the offer closes on May 27.

Wrightson Finance is expanding as demand rises for farms and prices for commodities increase.

The number of farm sales rose 23 per cent in March, a Real Estate Institute report said this month.

The ANZ said dairy product prices surged 21 per cent and meat 18 per cent in March from a year earlier.

ABN Amro Bank and ABN Amro Craigs are joint advisers for the sale, and ABN Amro Bank will underwrite the issue for at least $20 million of each maturity.