South Canterbury Finance to sell US$ bonds-sources

(For the latest Australia and New Zealand bond news, double
click on [AU/CRD] and then double click on the ID number)

SYDNEY, Feb (Reuters) - New Zealand finance company South
Canterbury Finance Ltd is considering selling bonds in the U.S.
traditional private placement market, several market sources
said on Thursday.

NabCapital is arranging the planned bond offer, they said.

NabCapital and South Canterbury Finance were not
immediately available to comment.

South Canterbury Finance is rated BBB- by S&P.

The U.S. private placement market has been a popular source
of funds for Australian and New Zealand corporations looking
for long-dated debt.

New Zealand dairy company Fonterra Co-ooperative Group Ltd,
casino operator Sky City Entertainment Group (SKC.NZ: Quote, Profile, Research, Stock Buzz), listed
power company Contact Energy Ltd (CEN.NZ: Quote, Profile, Research, Stock Buzz) and electric utility
Meridian Energy have used the market to raise funds.

Typical buyers of traditional private placements are U.S.
insurance companies keen on long-dated paper to match their
assets.
(Reporting by Cecile Lefort)