POWER BOARD LOAN

Auckland Star, Volume LXIV, Issue 146, 23 June 1933, Page 8

POWER BOARD LOAN

AUCKLAND PROPOSAL. INTEREST RATE VARIATION. ORDER-IN-COTTNCIIi ISSUED. (By Telegraph.—Special to " Star.") WELLINGTON, this day. A variation in the statutory rate of interest on local body securities is authorised by Order-in-Council in respect to £224,500, which the Auckland Electric Power Board proposes to borrow in London. The official notice recites that whereas under the Local Authorities Interest I Reduction Act it is not now lawful to j raise a loan at an interest rate in excess of £4 5/ per cent, it is expedient that this local authority be authorised to raise the said loan at a rate of interest not exceeding £4 10/ per cent for a term not exceeding five years, and authority is given accordingly. The above message refers to a loan of £224,500, which matured in March last. The Auckland Electric Power Board then invited holders of the debentures to renew the loan at 4£ per cent. About 60 per cent of the holders renewed, and the others, who aid not wish to renew, were paid in cash. In order to save the rate of exchange arrangements were made by the Power Board with a bank in England to pay the debenture holders against an overdraft. The Power Board had the money in New Zealand to pay those who did not wish to renew the debentures, but it was

in 'order to save the exchange that arrangements were made with.the bank. , =====