NEW ZEALAND LOAN

Dominion, Volume 18, Issue 192, 9 May 1924, Page 8

NEW ZEALAND LOAN

FOUR TIMES OVERSUBSCRIBED BEST OVERSEAS TERMS FOR A YEAR The New Zealand £5,000,000 loan on the London market has been oversubscribed nearly four times. As Minister of Finance the Prime Minister yesterday expressed his pleasure in a high degree with the result. “The loan was issued at 95 at 4} per cent, per annum, term 20 years, underwritten for issue on May 6, closing May 8,” said Mr. Massey yesterday. “I was advised this morning that the approximate amount applied for is over 19 millions up to Wednesday, but lists are being kept open until the country applications have come fh. I should not be surprised to find the loan go' to a premium or very nearly so within the next few days. “As I anticinated some time ago, the rates of interest have hardened, and this loan is costing us more than the 1923 loan. Nevertheless, this loan has been raised on better terms than those obtained bv any other overseas country during the last twelve months, or, really, since our last loan was placed on the market. “It is not proposed to compound the stamp duty on this occasion, as a saving can be effected thereby. Even if this were included, the rate would be 10s. per cent., not 255., as mentioned in a recently-published financial article. Excluding stamp duty, the estimated charges are 355., thus netting on the issue a return of £93 ss.

“The money being raised is intended for the purpose of Public Works and State Advances, and is allocated as follows:— ? £3,000,000 for Public Works and £2,000,000 for Advances. “The annual yield to investors will be £4 14s. 9d. per cent, per annum, as against £4 6s. lid. per cent, for the last loan. The annual cost per cent., after allowing for expenses, will bo £4 16s. 5d., as compared with £4 9s. 2d. last year. These figures, by the way, do not include provision for redemption. “Recent issues have been:

"Queensland, April 4, 1924, rate of interest 5} per cent., issued at 99}. “South Australia, March, rate of interest 5 per cent., issued at 98. “New South Wales, March, rate of interest 5 per cent., issued, at 97}d. “South Africa, February,*s per cent., issued at 99. In this case 40 per cent, was left with the underwriters.” Mr. Massey concluded by stating:— “The result of the loan as compared with those of other borrowing countries shows that New Zealand still holds its supremacy in British financial circle,'!.”

LOAN , OVER-SURSCRIBED London, May 7. Tile New Zealand five millions loan lias been orer-subscribed. —Aus.-N.Z. Cable Assn.

STOCK EXCHANGE DEALINGS London, May 7. It is stated that Stock Exchange dealings in the New Zealand five-mil-lion loan issue will probably not commence before Monday. _lt is not thought that any material premium wll "He established.—Reuter.