Heartland New Zealand Limited is considering launching a bond issue as part of its future funding strategy.

This will co-incide with the proposed acquisition of PGG Wrightson's finance arm and the maturity of $92 million of retail bonds in October.

Whilst Heartland said it has sufficient cash on hand to repay the maturing PGG Wrightson bonds in full, it will also look at a bond issue of its own.

Westpac and the Bank of New Zealand has been mandated to investigate the bond issue "as a possible refinancing option."