COMMERCIAL Successful $20m bond issue by Comalco

Press, Volume CX, Issue 32462, 24 November 1970, Page 18

COMMERCIAL Successful $20m bond issue by Comalco

(NZ. Press Association—Copyright)

MELBOURNE, November 23.

Comalco Investments Europe S.A., a wholly owned subsidiary of Comalco, Ltd, has completed a bond issue in the international capital market for the principal amount of SUS2O million.

The net proceeds of the issue are being applied by Comalco to financing Its share of the cost of construction of the Bluff aluminium smelter being built by New Zealand Aluminium Smelters, Ltd, in which it has a 50 per cent interest.

The issue price for the bonds, which carry a coupon of 9j per cent per annum, was 98* per cent of face value. The bonds will mature on November 1, 1985. Through the operation of a sinking fund provision, the issue will have an average life of 10.25 years. Facilities were made avail., able for delayed delivery, and bonds totalling $400,000: will be issued under this provision.

These bonds will be delivered, and payment made, on January 19. “We are pleased by the

support we have received from investors for our first public offering in the international capital market,” said Mr D. J. Hibberd, the chairman of Comalco. "The bonds were offered in competition with a number of highly regarded European [borrowers, and since the [underwriting agreement was signed they have generally been quoted in the market at or above their issue price.” The bonds are secured by a charge over debentures issued by New Zealand Aluminium Smelters, Ltd. The issue was arranged by

a group of underwriters led by Morgan et Cie, International S.A., Deutsche Bank Aktien Gesellschaft, and the First Boston Corporation.