N.Z. London loan
PA Wellington A JUS3SOM floating rate note issue was being launched in London, the Secretary to the New Zealand Treasury, Mr Bernard Galvin, said.
The FRN (floating-rate notes) will have a life of 15 years with the interest rate set at Libor (the London inter-bank offer rate).
The interest rate formula was favourable, he said in a statement
The latest FRN issued by New Zealand in the Euromarket had an interest rate formula of Libor plus oneeighth of one per cent.
That issue would be repaid early to reduce the costs of servicing overseas debt, he said.
The issue .is the second part of a ?USSOOM refinancing operation under taken by the Government. Last week, the Minister of Finance, Mr Douglas, said a fixed rate issue of SUSISOM for 25 years had been announced in the US domestic or “Yankee” market. Those notes had been offered at an interest rate of 9.875 per cent, the first time since 1979 that 25 year notes of that kind had been issued with a coupon below 10 per cent.
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Bibliographic details
Press, 15 January 1986, Page 27
Word Count
179N.Z. London loan Press, 15 January 1986, Page 27
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