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http://www.interest.co.nz/news Marac Finance has increased the size of its bank lending facility by NZ$80 million to NZ$480 million, bringing in the Bank of New Zealand to its syndicate of 5 major banks as it further diversifies its funding base to cope with tough times in the finance company sector. The new bank facility joins a NZ$300 million securitisation facility and Marac's retail debentures of NZ$570 million, which carry a BBB minus investment grade rating from Standard and Poors. That rating was reaffirmed yesterday by Standard and Poors. Standard and Poors also warned that liquidity and diversified sources of funding would be key in future ratings. The increase in the bank facility is in line with indications from Marac Managing Director Brian Jolliffe back in February. The facility is a cash advance facility, split into three equal tranches, with terms of one year, two years and three years. Jolliffe said the facility would improve Marac's liquidity and enable it to support existing clients. He said retail deposit reinvestment rates continued at around 65%, with inflows of new monies a little tighter, reflecting the current economic conditions. "So we will continue to be very prudent, maintain the credit quality of our lending, and continue to ensure appropriate liquidity. The additional $80m will be used for this purpose," Jolliffe said. The new syndicated facility was jointly arranged by ANZ and Westpac. ANZ's Managing Director of Institutional, Corporate and Commercial banking, Nigel Williams, said this deal showed the syndicated bank loan market continued to be available for well rated borrowers."We were very pleased to assist MARAC to establish New Zealand's largest syndicated facility for a non bank financial institution," Williams said. "This is a significant financing transaction in the current market environment, which confirms that investment grade businesses continue to have the ability to attract funding through well structured deals". "We are confident that this new bank facility under-scores our Investment Grade credit rating from Standard & Poor's which was reaffirmed yesterday" said Brian Jolliffe.