N.Z. seeks loan

Press, 18 March 1988, Page 13

N.Z. seeks loan

NZPA-Reuter ; London New j Zealand is raising about SNZ33S million through yen eurobond issues in the London market. I It launched a 10 billion yen issue (SNZII7.6M), due April 8,1 1993, paying 7 per ccent and priced at ■ 102 7/8%, Nomura International said as lead manager. Another issue, also led by Nomura, was for the same amount and was also due 1993, but paid 5% and was priced at 1013%%. The second issue is available in denominations of IM yen and will be listed in Luxemburg. Payment date is April 8. Fees consist of a 1%% selling! concession and %% for management and underwriting combined. An official at Nomura said the issue is a high-risk highyield security. The ■ redemption formula is

i i J|. [ '' extremely complicated, but if the!yen falls (below 170 yen to the' United States dollar, the investor ■ will) Ipse all of the principal put lip. If, on the date of redemption, the dollar/yen 'exchange rates are; at current levels at about 127 j, the investor will receive only 57.3% Hof I his principal. But if the 11 yen rises from current levels, the annualised return could be well above the 7% coupon, the Nomura official said. | The issue is expected |to haye limited appeal and will not trade widely.