AUSTRALIAN LOAN

Ashburton Guardian, Volume 53, Issue 285, 13 September 1933, Page 5

AUSTRALIAN LOAN

NEW CONVERSION ISSUE. SUM OF £15,000,000 STATED. OPERATION OX LONDON MARKET Press Association—Copyright). (Received This Day, 10.35 a.m.) LONDON, September 12.

The Australian Resident Minister in London (Mr S. M. Bruce) will launch immediately a conversion loan. It is believed that, following negotiations with the Treasury, the amount will exceed £15,000,000, bearing interest at the rate of 6 per cent*

THE TOTAL AMOUNT INCREASED.

TWO STATE ISSUES INCLUDED

(Received This Day, '10.35 a.m.)

LONDON, September 12

The Australian conversion loan is approximately £21,000,000, the terms of which are already in the hands of Mr J. A. Lyons. It is not only the largest single conversion Mr Bruce is undertaking, but possibly the largest conversion ever underwritten.

Mr Bruce intended until recently to launch only the Commonwealth £15,000,000 6 per cent., but on the flood time of Australian credit he seized the opportunity for adding the New South Wales and Western Australian 5| per cents. The improvement on the terms obtainable for the previous conversion loan in June is the measure of the progressive improvement in the Commonwealth's credit in London.

The Treasury's ban on conversions is still operative, but again was specially lifted for Australia's benefit. Outstanding convertible loans are now only £34,000,000, none of which is above 5£ per cent. Further immediate Australian conversions are unlikely because a big British funding operation is imminent. South Africa also is anxious immediately to enter the market.