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Heartland plans to raise $30m

NZN 11/12/2016 Sophie Boot

Heartland Bank wants to raise up to $30 million through a placement and share purchase plan.

The placement will be conducted on Monday through a bookbuild for institutional and other select investors in New Zealand and Australia, the bank said.

Heartland will raise up to $20 million through the placement.

The share purchase plan, which will raise as much as $10 million, will offer New Zealand-resident shareholders up to $15,000 worth of shares.

Heartland said the final terms will be announced early next year, after its first-half earnings are published in February, but noted that the shares will be offered at a discount.

It said the capital raising will support lending growth and help fund its digital strategy.

Heartland said it had been investing in data analysis to "more precisely" target its customers, and has put resources into supporting digital origination.

The bank affirmed its annual guidance for net profit of between $57m-$60m. It boosted annual profit 12 per cent to $54.2m in the year to June.

The shares last traded at $1.53 and have risen 16 per cent this year.

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