Heartland Bank Retail Share Offer February 2017

Heartland Bank LogoOn 21 February 2017 Heartland Bank announced a half year profit of $29.1M.

Heartland Bank is offering existing shareholders a chance to buy a maximum of $15,000 worth of additional shares at $1.46.

On 22 February 2017 the share price closed at $1.58.

At $1.46 the Heartland Bank's forecast dividend yield is nearly 9.0%. The credit rating agency Fitch, recently gave them a positive review.

Heartland Bank Limited (Heartland) (NZX: HBL) achieved a net profit after tax (NPAT) of $29.1m for the half year ended 31 December 2016, an increase of 14% from the half year ended 31 December 2015. The increase in profitability was driven primarily by growth in receivables across all divisions - Household, Business and Rural.

Achievements for half year:

  • Increase in profitability of 14%
  • Strong growth in receivables of 7%
  • Return on equity (ROE) of 11.6%
  • $20m institutional placement completed
  • Launch of multiple digital platforms

If you hold Heartland shares this might be a good opportunity to buy some more. If you want to discuss the options please call us on 578 3863.

Cick here to view the Heartland Bank 2017 Share Purchase Plan offer document.

If you are already a shareholder in Heartland you should have received a letter that begins as follows.

"Dear Heartland shareholder

Heartland Share Purchase Plan

On behalf of the directors of Heartland Bank Limited (Heartland), I am pleased to offer you the opportunity to acquire new Shares through this Share Purchase Plan (SPP), without incurring brokerage or other transaction costs.

Heartland announced on 12 December 2016 that it intended to raise up to $30 million of new capital to ensure it continues to have sufficient capital to support its growth and to further invest in its digital strategy. The first stage of the capital raising was a $20 million equity placement to existing and new investors under which 13,698,630 new Shares were issued on 15 December 2016 at $1.46 per Share. The second stage of the capital raising is this SPP. The SPP enables each Heartland shareholder with a New Zealand address recorded in the share register on the record date to subscribe for up to $15,000 of Shares at a discounted price. The price Heartland shareholders will pay for each new Share under the SPP will not be more than the price paid by investors in the equity placement. We had initially intended to raise up to $10 million through the SPP but, given the strong interest that investors have shown in the SPP and our desire to provide our loyal retail shareholder base with an opportunity to make a meaningful further investment, we have decided to increase the size of the SPP and we now intend to offer up to $20 million of Shares.

If we receive applications for Shares in excess of $20 million, your application will be scaled on a proportionate basis with regard to the size of your application and you will receive less than the amount you applied for. If you do not participate in the SPP, your shareholding in Heartland will be diluted..."


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