The securing of $42.5 million in funding by Dunedin investment company Rural Portfolio Investments was being viewed positively by analysts.
Given questions about the performance of PGG Wrightson, in which it has a cornerstone shareholding, ABN Amro Craigs adviser Chris Timms said securing that amount of funding was positive.
Rural Portfolio Investments (RPI) announced late on Friday that it was in an "advanced" stage of finalising funding for the redemption of its redeemable preference shares (RPS) which were due for settlement on April 15.
This meant it was not going to make a further offer of redeemable preference shares and it would settle with RPS holders on March 27, with shares ceasing to trade on March 24.
Mr Timms said while it was not known where the $42.5 million was sourced from, it was a positive move given the current credit environment.
"On the face of it, the fact they have secured $42.5 million in the current environment, you would have to say is pretty positive for RPI and holders of preference shares."
RPI was formed in August 2003 and is 50% owned by Dunedin's McConnon family, through their investment vehicle Aorangi Laboratories Ltd, and 50% by MCN Rural Investments, representing Craig Norgate's family interests.
It has a 30% shareholding in the rural servicing company PGG Wrightsons (PGGW) and 24% holding in New Zealand Farming System Uruguay, in which PGGW also has a stake.
Securing funding would also be welcomed by PGGW, which in recent months has been subjected to numerous rumours, including the future of RPI as an investor.
Announcing the rural servicing company's annual result last month, chairman Craig Norgate was forced to shore up investor confidence by saying RPI was close to securing the refinancing of its RPS.
Meanwhile, New Zealand Farming Systems Uruguay (NZFSU) received some welcomed news, with an A-minus credit rating for a funding structure it has established in Uruguay to raise debt to develop its South American farms.
Chairman Keith Smith said NZFSU was at "an advanced stage" in obtaining debt funding using trusts to provide security for the borrowing over part of its milk receipts and part of its land-holdings.
NZFSU financial performance was hit hard last year by drought and plummeting milk prices, resulting in an $NZ18.6 million loss in earnings before interest and tax.
This compared to $19.4 million for the same period a year earlier but was despite a 147% increase in revenue from $5.5 million to $15.7 million.
