AUSTRALIAN LOAN

Evening Star, Issue 22228, 4 January 1936, Page 11

AUSTRALIAN LOAN

SAVING IN INTEREST Press Association—By Telegraph—Copyright LONDON, January 2. Mr Bruce announced ihe underwriting to-morrow of £21,657,000 of the New South Wales 5 per cent, stock, which is being converted to 3 per cent, at £95 10s, 1955-58. The issue price yields the investor £3 6s per cent,, saving £526,000 Australian pounds annually in interest. The feature of the loan, which is the second largest Mr Bruce has floated in London, is his continuing to secure money here at a lower rate than in, Australia, where interest on the latest internal loan is 67s 6d per cent. This conversion brings Mr Bruce’s London operations since October, 1932, to £182,000,000, and leaves only £11,000,000 optional conversions outstanding. The ‘Daily Telegraph’ says: “The strength of gilt-edgeds since Christmas is a good omen for the conversion, which rounds off one of the_ most remarkable chapters in refinancing in the history of the London capital market. The recent strong rise in wheat is of first-rate importance to Australia, and it may be expected that the conversion will be on a heavy scale.”