POWER BOARD LOAN.

Auckland Star, Volume LXIV, Issue 257, 31 October 1933, Page 9

POWER BOARD LOAN.

CONVERSION OFFER ACCEPTED CHAIRMAN GRATIFIED. An offer received through the banks of the Auckland. Electric Power Board in London hae been accepted for the taking up of the balance of the redemption loanamounting to £104,400. The procedure of converting the present holdings to registered debenture stock is a new departure in local body finance. The offer is for conversion at £97 per cent, with interest at 3} per cent, maturing on March 1, 1938. The interest cost is £3 12/5 per cent, and £4 6/10 per cent including redemption. A report by Mr. R. H. Bartley, general manager, disclosed the details of the scheme, and explained the work of the recent deputation which conferred with the Treasury and Audit Departments. In accepting the offer, the board authorised the Bank of Nev Zealand to act ae its agents in London for the issue of script certificates in the meantime, until the formalities are completed. The chairman of the board, Mr. W. J. Holdsworth, said this morning that the terms would make it one of the best loans raised for many years by a local body in New Zealand, as it was practically on a par with recent Government loans. In view of statemente made recently about New Zealand credit it went to show that that criticism did not apply to, every" local body, and that the Auckland Power Board's finances were regarded as jrilt-cdjred security. Mr. Holdsworth said that there had been technical difficulties to overcome in the preeent negotiations, but in other parts of the world it was a common method. All that was now necessary was an Order-in-Council to finalise it. Three large companies in England, two insurance companies and Lloyds' branch were prepared to take up the loan. They stipulated inscribed stock.