Last week alternate finance provider Cash Converters International Limited (Cash Converters) announced it had made a strategic investment in the New Zealand Cash Converters Master Franchisor. This continues the company’s growth strategy and in particular its focus on company owned stores
The New Zealand network currently consists of 14 stores (nine franchised and five owned) generating an EBIT of NZ$4m. Over the five year time frame of the transaction the New Zealand operation has plans to expand to some 50 stores with a target of half of these being company owned.
With a well established brand already in operation in New Zealand, the company will look to expand its offerings including the introduction of the higher value unsecured loan products offered by Cash Converters in Australia.
This acquisition should provide Cash Converters with the ability to expand significantly in a market operating under a similar legal and banking regime to its home market, underpinning bottom line growth for the company.
The Cash Converters 19 September 2018 fixed rate bond is available to wholesale investors at circa $102 which represents a yield to maturity of 7.43%.
For further information please contact your FIIG dealer.
All prices and yields are a guide only and subject to market availability. FIIG does not make a market in these securities. Cash Converters bonds are only available to wholesale investors.