Lower interest rates

Press, 12 July 1980, Page 19

Lower interest rates

The Development Finance;: Corporation has mad'e)i across-the-board cuts in! interest rates on its current; debenture issue, reflecting; the high level of liquidity in:: the economy. DFC issues : have raised $36.5 million in!l under three months. i The three and four-yearil rates were cut a full one per; cent from 15 to 14 per cent.; Other changes were two), years down from 14.5 to 13.75; and five years from; 15 to 14,25 per cent. The.

isix-year term remained unjchanged at 14.5 per cent. ; The DFC also announced ! it was closing its highly sucIcessfuT 12/20 call bond issue iat the end of the month. It (said that 990 subscriptions (had been received to date in : these issues — or; $36,500,000. ; The chairman of the Chal-i lenge Corporation (Mr R. R.i Trotter) also announced last! ; night that the company's, June prospectus had closed. I

The issue was of $5 million, andfirst-ranking debenture stock, with a right to accept over-subscriptions for a further S 5 million and raised a total of $lO million, except for a small reservation to meet the conversions of maturing stock.

Mr Trotter said that Challenge issues had raised a total of $27 million since May 16 — or in just over seven weeks. “This is an excellent result.” he said.