Landmark spec, prefs to stay at 15 per cent

Press, 2 August 1983, Page 24

Landmark spec, prefs to stay at 15 per cent

PA Auckland The directors of Landmark Properties, Ltd, have given no thought to reducing the interest rate of 15 per cent on its proposed issue of specified preference shares, a director (Mr 0. M.

Newland) said yesterday. He added that the resolutions proposing the issue of the preference shares will be put to the annual meeting of the company as planned on August 8.

The shares will be issued in the ratio of two for each five ordinary 25c shares held on the day of the meeting. The preference shares will have a face value of 25c and will participate equally with ordinary shares for cash and bonus issues. They will convert in 1988 at the rate of two ordinary 25c shares for each three preference shares. Elsewhere on the interest rate front rates continued to settle. Transferable certificates of deposit eased a little to as low as 8 per cent for 30 days, and 10 per cent for 90180 days. Commercial bill rates, though, were still in the 12.5-13 per cent range for 90 days. N.Z.I. Finance, Ltd, has cut up to 4 percentage points off the rates it offers for deposits.

They are a little above those set last Friday by Marac. The N.Z.I. call rate, for instance, is at 9.5 per cent and that offered by Marac is 8, and the one-year rate 10.5 and Marac’s Id

The general manager of N.Z.I. Finance, Mr M. J.

Wells, said that with the present uncertainties in the market it was likely rates would require more frequent review. The new N.Z.I. rates are (previous rates in parentheses): Call, 9.5 per cent (11): one month, 9.5 (11): two months, 9.5 (12): three months, 9.75 (12.5): six months 10 (13.5): one year, 10.5 (14): two years, 11 (15): three years, 11.5 (15.5): four and five years 11.5 (14.5). Cuts in mortgage lending have appeared. Allied Mortgage Guarantee Company, Ltd, which announced cuts of one point last week, announced that its first mortgage three-year-money interest rate was down to 15.5 per cent, a total reduction of 3 percentage points. Second mortgages for three years are down to 17, from the cut to 18 per cent last week. Security Nominees, Ltd, has cut 3 per cent from borrowing rates on contibutory first mortgages. In view of its many other financing options, Farmers Trading Company, Ltd, is not proceeding with new rates or its debenture stock issue. The company may wait until its has published accounts for 1984 to comply with the new securities requirements due on September 1.