TEXT-NZ's Xero says plans NZ$23 mln share issue

(The following statement was released by the company)

WELLINGTON, April 7 - New Zealand software company Xero Ltd (XRO.NZ) said on Tuesday it planned to raise NZ$23.2 million ($13.6 million) through an issue of shares to strategic investors.

It said it would sell new shares at NZ$0.90, around 4.7 percent above the volume weighted average share price of Xero of NZ$0.86 per share over the 5 trading days prior to Xero's announcement on 2 April 2009.

Shares in Xero closed on Monday at NZ$1.14.

The proceeds of the issue will be used to accelerate its growth plans in Britain, the United States and Australia. ($1=NZ$1.70)