Failed South Canterbury Finance's 35,000 investors will be repaid the $1.6 billion capital and interest they are owed next Wednesday, following the company's receivership in late-August.
Trustees Executors, which has held the Government's $1.6 billion bailout cash for almost two months and has already paid out $350 million to 7000 bondholders, has completed its audit and prepared the funds transfers for the debenture and deposit holders.
Craigs Investment Partners broker Greg Easton said there had been increased interest from former South Canterbury investors in where to next place their money, with most in general having been long-term investors relying on an income stream.
"They are looking to replace that income and are cognisant that [their new] income is going to be down," Mr Easton said.
The major banks were subsequently offering slightly higher interest rates to attract investors, while brokers were being scrutinised closely on shares and property trusts, Mr Easton said.
He did not believe there would be a surge of cash being reinvested next week, as investors would be "taking their time and planning ahead" in deciding their reinvestment strategies.
The total $1.775 billion pay-out is by far the largest of eight being made under the Government's emergency retail deposit guarantee scheme.
Trustees Executors regional manager Yogesh Mody said it had taken slightly longer than the estimated four to six-weeks to arrange the pay-out from South Canterbury.
"We wanted to take a prudent approach to ensuring investor details were as up-to-date and accurate as possible," he said in a statement this week.
The debenture and deposit holders will receive their principal investment, their original interest rate up to August 30, then 3% from August 31 to the date of payment; based on the official cash rate.
The Government offered a total $1.775 billion, including a loan of $175 million to the receivers to pay first ranked creditors, to become the main creditor.
It has been estimated the sale of South Canterbury assets could realise $1.1 billion for the Government; but leave taxpayers short by up to $600 million.
