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New rate under 10 p.c. for loan

Wellington reporter

New Zealand is refinancing a SUSSOO million overseas debt, at a rate below 10 per cent for the first time since 1979, the Minister of Finance, Mr Douglas, announced yesterday.

He said the coupon rate of 9.875 per cent at which the 25-year loans have been offered make it timely for new debt to replace some SUSSOO million short term notes issued in the United States.

The lower interest charges reflect a decline in United States interest rates, but also a high level of confidence in the future performance of the New Zealand economy, Mr Douglas said.

The short term notes, which were at a floating rate, have been called and two separate transactions are being completed to

issue new debt to the same amount. A fixed rate issue of SUSISO million for 25 years has been announced in the United States domestic or “Yankee” market at 9.875 per cent.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19860110.2.13

Bibliographic details

Press, 10 January 1986, Page 2

Word Count
159

New rate under 10 p.c. for loan Press, 10 January 1986, Page 2

New rate under 10 p.c. for loan Press, 10 January 1986, Page 2