"LONG TERM" ISSUE
RAISED IN LONDON
BANK OF NEW ZEALAND
The Bank of New Zealand in London announced the issue of £500,000 5 per cent, long-term mortgage debenture stock at £98, payable in full on loth November. The prospectus was issued,, not as an invitation to the public to. subscribe, but in compliance with the Regulations of the Committee of the London Stock Exchange, for the purpose of giving information to the public with regard to the company. The principal will be paid at par on 15th November, 1940, at the office of the Bank of New Zealand, London, where the interest will also be payable. This issue forms part of a borrowing authorised by the above Act, the total of which may not at any time be greater thai; three times the amount paid up on the "long term mortgage" shares. This debenture stock is a liability of the bank, and is further specifically secured on the assets of a fund described in Section 21 of the Act, and known as the "long term mortgage fund." These assets consist of loans (on an amortisation basis) on fi # rst mortgages of freehold and leasehold'land in New Zealand. . . The mortgages outstanding amount to £1,160,266, and the amount of debenture stock already issued aud outstanding is £106,050. Of the proceeds of this issue approximately £350,000 will be utilised to clear the overdraft granted by the bank to the "fund" by virtue of Section 22 of the Act. The stock is transferable in multiples of £1, and the register is kept at the bank's London office. The long-term mortgage department of the bank is a separate de-, partment for this class of business. It has its own capital, distinct from the ordinary capital of the bank, which possesses authority also to borrow up to three times the amount of the "long-term mortgage" shares, which now amount to £703,125. This power has been exercised in New Zealand by the issue of debenture stock to the extent of £106,050, and the above issue for a further £500,000, bearing interest at 5 per cent., has been placed in London at 98^
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Bibliographic details
Evening Post, Volume CX, Issue 133, 3 December 1930, Page 14
Word Count
355"LONG TERM" ISSUE Evening Post, Volume CX, Issue 133, 3 December 1930, Page 14
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