Tower bonds in demand

The company set aside $25 million of the total for current shareholders but the amount applied for outweighed the allotment.

"Applicants will be advised shortly as to the level of scaling and their confirmed allotment of Tower Finance Capital Bonds," the company says.

"As the preference pool of $25 million was oversubscribed, there will be no public pool. All public pool applications received by the registrar will be returned to applicants as soon as possible."

Tower says the remaining $100 million has been set aside for clients of NZSE broker firms and closes at the end of next week. The $1.00 bonds will offer a minimum return of 8.65% per annum, payable quarterly.

Money raised from the bonds will be used to finance strategic growth initiatives such as reorganising distribution channels and building the Tower brand in Australia.

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