BRITISH FOUR AND A-HALF PER CENT. WAR LOAN

Dominion, Volume 8, Issue 2499, 28 June 1915, Page 6

BRITISH FOUR AND A-HALF PER CENT. WAR LOAN

INVITATION TO COLONIAL INVESTORS

CABLED DEPOSITS RECEIVABLE BEFORE JULY 10

THE LOAN PROSPECTUS The High Commissioner reports:— London, June 26, 12.50 a.m. "The Bank of England announces that it is prepared to receive applications for the war loan from abroad, provided telegraphic advice is received, with bank deposit of 5 per cent., paid before July 10." Yesterday His Excellency the Governor received from the Imperial Government the following information by oable for publication in New Zealand:— PER CENT. WAR LOAN, 1925-1945. "Issue of stock or bonds bearing interest at four and a half per cent, per annum, payable half-yearly, on June 1 and December 1; price of issue fixed by His Majesty's Treasury at XIOO per cent.; a full half-year's dividend will be paid on December 1, 1915. "The stock is ah investment authorised by the Trustee Act, 1893, and trustees may invest therein, notwithstanding that the price may at the time of investment exceed the redemption value of ,£IOO per cent. "Applications, which must be accompanied bv a deposit of .£5 per cent., will be received at the Bank of England Threadneedle Street, London, E.C., and may be forwarded either direct or through the medium of any banker or stockbroker in the United Kingdom. Applications must be for even hundreds of pounds. Arrangements aro being made for the receipt of applications for smaller amounts than ono hundred pounds through the Post Office. Further payments will bo required as follow "Ten pounds per cent, on Tuesday, July 20; per cent, on Tuesday, August 3; ,£ls per cent, on Tuesday, August 17; .£ls per cent, on Tuesdav, August 31 ; .£lll per cent, on Tuesday, September 14 j per cent, on Tuesday, September 28; £10 per cent, on Tuesday, October 12; £10 per cent, on Tuesday, October 20 ' "The Governor and Company of the Bank of England are authorised to received applications for this loan, which will take the form either of inscribed stock or bonds to bearer, at the option of the subscribers. If not previously redeemed, the loan will be repaid at, par on December 1, 1945, but His Majesty's Government reserve to themselves the right to redeem the loan at paT at any time on or after December 1, 1925, on giving three calendar months' notice in the London Gazette. Both capital and interest will be a charge on the consolidated funds of the United Kingdom.

"The books of the lorn will be kept at the Bank of England end at the Bank of Ireland. Dividends will be paid half-yearly on June 1 and December 1. Dividends on stock will be paid by warrant, which will bo sent by post. Dividends on bonds will be paid by coupon

'Inscribed stock will be convertible into bonds to bearer nt anv time, without payment of any fee, and bonds to bearer ( ,ill T, e exchangeable for "inscribed stock on payment of a fee of Is. per head.

"The instalments may be paid in full on or a ft er July 20, 1915, under discount at the rate of « per cent per annum. I n 0 f default in the pavmeut of anv instalment by its proper date the deposit alu i the instalment previously paid will bo liable to forfeiture.

"Scrip certificates to bearer with coupon attached for the dividend payable on December 1, 1915, will be issued in exchange for the provisional receipts. As soon as these scrip i certificates have been paid i n f n ll they can be inscribed (that is, can bo converted into stock), or they can be exchanged for bonds to bearer (as soon as these can be prepared), in denominations of .gioo, ,£2OO, .£SOO, £1000, £5000, and £10,000. Inscribed stock will be transferable in any sums which are multiples or a penny. >

"Conversion of 3£ per cent, war loan, 1925-1928; 2£ per cent. Con' sols; 2| per cent, annuities; 2} per cent, annuities.

"Holders of 41 per cent, war loan, 1925-1945; will have the additional right in respect of each one hundred pounds 6tock (or bonds), held by them, and fully paid in cash, to exercise tne or other of the four following options of conversion, provided application for conversion is made not later than October 13. 1915: — "Option 1. —Conversion of 3i per cent, war loan, 1925-1923: to exchange stock (or bonds) of 31 per cent. wa,r loan 1925-1928 to an amount not exceeding £100 nominal for fully-paid stock (or bonds), of 41 por cent: war loan 1925-1945 at the rate of ,£IOO of the former, with a cash payment of ,£5 per cent, thereon for .£IOO of the latter. Persons who cxerciso this option will receive the dividend of .£1 10s. lid. per cent, payable on September 1, 1915, in respect of the 3} per cent, war loan 19251928 surrendered, and a full half-year's dividend of £2 ss. per cent, payable on December 1, 1915, in respect of 41 per cent, war loan 1925-1945 issued in lieu thereof.

Option 2—Conversion of 21 per cent. Consols: To exchange stock (or stock certificates) of 2J per cent. Consols to an amount not exceeding £75 nominal for fully-paid stock (or bonds) of 41 per cent, war loan 1925-1945 at the rate of of tho former for .£SO of the latter. Persons who exercise this option will receive the usual quarter's dividend of 12s. 6d. per cent., payable on October 5, 1915, in Tespect of the 2j per cent. Consols surrendered, and a full half-year's dividend of £2 ss. per cent., payable on December 1, 1915, and in respect of the 41 'per cent, war loan 1925-1945 issued in lieu thereof.

Option 3.—Conversion of 2J per cent, annuities: To exchange stock (or stock certificates) of 2| per cent, annuities to an am&unt not exceeding £67 nominal for fully-paid stock (or bonds) of 41 per cent, war loan 1925-1915 at the rate of .£67 of the former for .£SO of tho latter. Persons who exercise this option will receive the usual quarter's dividend of 13s. 9d. per cent, payable on October 5, 1915, in respect of the 2f per cent, annuities surrendered, and a full half-year's dividend of £2 ss. per cent., payable on December 1, 1915, in respect of the 41 per cent, war loan 1925-1945 issued in lieu thereof.

"Option 4.—Conversion of 2| per cent, annuities: To exchange stock (or stock certificates), of per cent, annuities to an amount not exceeding ,£7B nominal for fully-paid stock (or bonds) of 4J per cent, war loan 1925-1945 at the rate of ,£7B for the former'for <£50 of the latter. Persons who exercise this option will receive the usual quarter's dividend of 12s. 6d. per cent., payable on October 5, 1915, in respect of the 2} per cent, annuities surrendered, and a full half-year's dividend of £2 ss. per cent., payable on December 1, 1915, in respect of the 4i per cent, war loan 1925-1945 issued in lieu thereof.

"In the event of future issues (other than issues made abroad or issues of Exchequer bonds, Treasury bills, or similar short-dated securities), being made by His Majesty's Government for the purpose of carrying on the war, stock and bonds of this issue will be accepted at par, plus accrued interest, as the equivalent of cash for the purpose of subscriptions to such issues. "A commission of one-eighth per cent, will be allowed to bankers, brokers, and financial houses on allotments made in respect of cash applications .for thia issuo bearing their stamp, but no commission will be allowed in respect of applications tor conversion. "Application forms for cash subscriptions may be obtained from the Bank of England and the Bank of Ireland, at any Bank or Money Order Office in the United Kingdom of Messrs. Mullens, Marshall, and Company, 13 George Street, Mansion House, E.C., and of the principal stockbrokers. Application forms for conversion will be forwarded with each letter of allotment. "The list of applications will be closed on or before Saturday, July 10, 1915."