BROADLANDS DEB. ISSUE Highest interest rate 10%

Press, Volume CXIV, Issue 33563, 18 June 1974, Page 23

BROADLANDS DEB. ISSUE Highest interest rate 10%

The highest rate offered in 'the new 7 million issue of I registered first debenture I stock by Broadlands Dominion Group, Ltd, is 10 per ;cent for the five and six year terms. However, the rates for! !terms longer than that are) lower: 9| per cent for seven,! eight, and nine years, and 911 iper cent for ten and mores I years. The return is somewhat commensurate with inflation. I the directors say in the prospectus. I They reserve the right to -accept over subscriptions for a further sBm. The other rates of the issue range from 4| per cent for money at call to 7| per cent for four yea. s. “Investors will be aware that the Minister of Finance has recently relaxed the provisions of the Interest on Deposits Regulations thereby permitting finance companies to pay higher rates than pre-’ viously for secured monies,” the directors say. “These rates are neverthe-j. less still pegged for periods of less than five years but companies are at liberty to: 1 offer such rates as they, l decide for terms in excess of l five years. ' “Accordingly, directors:’ have resolved to pay a peakj! rate of 10 per cent for in- ' vestments of five and six!! years, this rate tapering off- 1 tor the longer terms. “It is hoped that the step ! taken by the Government is 1 only the first in totally revok- ' ing the regulations. “With the possibility of 1 this happening, it has been!l decided to incorporate into 1 this issue reviewable interest ' debenture stock for three and j four year terms based on the i two year rate.” i