Higher rates by Lombard

Press, 26 February 1977, Page 17

Higher rates by Lombard

Because of the current ■ tight liquidity situation and > the desirability of meeting ■ the increasing demand for j loan funds especially from the productive sector, Lombard New Zealand, Ltd, has raised certain interest rates in its new issue of secured debenture stock. The new issue is for SSM, with the right to accept oversubscriptions of a further SSM. In its new prospectus Lombard offers a top rate of 12£ per cent for four, five and six-year terms, which represents an increase of half a per cent over the corresponding rates in the previous issue. While the rate for the three-year term remains at 12 per cent, all other rates show increases of up to 1| per cent. The new rates are as follows, the previous rates being shown in parentheses; — Two years 111 per cent (10 per cent); one year 11| per cent (10 per cent); six months 91 per cent .(81 per cent); three months 81 per cent (8 per cent); call 6 per cent (51 per cent). Notice of withdrawal terms are; 6 months 10 per cent (9 per cent); 3 months 9 per cent (81 per cent) and one month 8 per cent (7| per cent). The managing director (Mr R. A. Beck) said that there was a considerable demand for funds from Lombard’s traditional areas of finance, and while every effort was being made to meet such requests, the company had adopted a policy of investing as much as possible in export or import substitution industries which was in line with Government policy and wishes. Mr Beck said that Lombard had an asset backing of $2 for each dollar of debenture stock issued. Speedo sets record \ Speedo Holdings, Ltd. has I i raised its interim dividend from 4c a share to 5c a share, after group net profit I rose 102 per cent to JsAustl.7M in the six months| 'to December 31. This result: exceeds the record $l.2Mi earned in the 1975-76 year.: The profit was after provid-j ing $673,000 more for tax at] SI,4M. I