The Investment Company in the New Zealand economy, Hellaby Holdings Ltd has recently said that the company will be redeeming notes worth $50 million which are due to mature in early June 2011.

The company has also said that the redemption is permitted under the trust deed of the company.

While it is to be mentioned here that the company will be redeeming these notes with a view to take advantage from the lower interest rates available through the core debt of the banking giant, the capital notes usually pay a fixed coupon rate of 8.5% a year quarterly in the form of arrears.

The company also pointed out the fact that it first sold these notes in 2006. The chief financial officer Richard Jolly said that the company is currently in a position to lower the overall interest cost via the banking facilities and debt gearing level give it the capacity to strengthen its balance sheet.

The share price of the company, field a rise of 2.1% standing at a level of $1.96. For the record, the shares were sold at a price of $1.30 a piece.