THE WAIPORI LOAN.

Evening Star, Issue 17880, 28 January 1922, Page 4

THE WAIPORI LOAN.

MONEY TO EE RAISED LOCALLY, The Finance Committee of the City Council reports having investigated tha question of providin'! the finance required for meeting the obligations of the L.P. and L. Department when the tenders for the additional generating plant at Waipori shall have been accepted. These tenders arc now in, and arc being dealt with by the department and the E.P. and L. Committee preparatory to submission to council. Inquiries have been made through the Bank of New Zealand as to the tonne upon which the sum required (£200,000) would be raised in London, and tlio reply is to tho effect that a 6 per cent, loan could be placed at £93. The actual cost to tho council, after allowing for cost of flotation and other charges, would be £6 16s lid per cent, for a loan repayable in fifteen years, In view of tho success which has been hitherto attained in raising money locally on a 5 per cent, basis at par, and tho fact that there is still a steady demand for our debentures, tho committee is of the opiniui that the council should continue tho effort to meet _tis requirements on the local market. Tho money will not be required all at once. As a mailer of fact, the pa,-incuts for tho plant will be spread over a- considerable period, thereby affording ample opportunity for the gradual filling of the, loan and incidentally saving a certain amount in interest, 'it is accordingly recommended that authority be mw granted tho Finance Committee to take the necessary steps to provide finance, fa- the Waipori extensions by raising on tbs local market a loan of £200,000 at par, tearing interest at the irate of 6 per cent, psr annum, and having a currency of twelve years.