UNDERWRITTEN.
NEW ZEALAND LOAN. £5,000,000 Flotation on London Market. 5 PER CENT AT £98 10/. (United P.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) LONDON, April 1.
A New Zealand loan of £.5,000,000 at 5 per cent at ,£9B 10/, redeemable in 1956 or 1971, has been underwritten.
Allowing for 2 per cent flotation and underwriting expenses, the cost of the loan will be approximately £5 5/3 per cent for the shorter option, and £5 4/3 if redeemed in 1971. A prominent business man in Auckland who haa had a good deal to do with flotation.!, expressed the opinion this morning that considering the depression and world conditions generally, the loan has been raised on good terms. He explained, however, that if the favourable exchange rate of 10 per cent were taken into consideration, then the loan, including all expenses, was really raised at £iOO 10/. On that basis, taken over the 24 years' period, the interest rate would amount to approximately £4 11/0, and for the longer period £4 13/4.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/AS19320402.2.66
Bibliographic details
Auckland Star, Volume LXIII, Issue 78, 2 April 1932, Page 9
Word Count
168
UNDERWRITTEN.
Auckland Star, Volume LXIII, Issue 78, 2 April 1932, Page 9
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