NEW ZEALAND LOAN

Dominion, Volume 19, Issue 208, 29 May 1926, Page 10

NEW ZEALAND LOAN

ALLOCATION OF PROCEEDS RAILWAY NEEDS PREDOMINATE The Minister of Finance (Hon. W. Downie Stewart) issued a statement yesterday dealing with the New Zealand loan, reported in yesterday’s cablegrams, to have been underwritten in London. The allocation of the proceeds indicates that railway requirements are to receive the lion’s share. "The New Zealand loan on the London market,” said the Minister, "will be for £6,000,000. It will be a 5 per cent, issue at £9B 10s., which will give investors a return of £5 2s. sd. per cent, of their investment. “Tlje proceeds will be allocated as follow:— “Railway construction, additions and Improvements, £3,000,000. “Hvdro-electric power, £1,000,000. “Telegraph extension, £750.000. “Other public works, £1,250,000. “Total, £6,000,000.”

WELL RECEIVED IN LONDON London, May 27. The New Zealand loan of £6,000,000 has been issued. The final instalment of 40 per cent, is payable on July 23, with interest in January and July, the first payment of half-year’s interest on January 1, 1927. The issue was well received in the City, which considers the terms favourable. —Aus.-N.Z. Cable

Assn. TERMS ATTRACTIVE (Rec. May 28, 7.20 p.m.) London, May 28. The “Morning Post’s” city editor, in an article, commends the New Zealand loan and warns other borrowers who are likely to be influenced by its absorption to follow New Zealand’s example as regards terms, which have obviously been framed with due regard for the facts of the situation and the securing of .absorption by genuine investors. The “Financial Times” states that a good reception was expected in view of the small floating supply of trustee stocks. The “financial News” states that the terms are decidedly attractive.— Aus.-N.Z. Cable Assn.