AUSTRALIAN LOANS

Greymouth Evening Star, 9 April 1927, Page 7

AUSTRALIAN LOANS

ANOTHER AMERICAN DEAL

FUTURE BUSINESS PROMISED

■Australian & N.Z. Cable Assn.) (By Cable—Press Assn.—Copyright.)

NEW YORK, April 7. The Equitable Trust Company has officially confirmed the news that it has purchased a new New South Wales loan of twenty-five million dollars, and that within a week or ten day the Company will offer the same to the public.

Some observers, while sceptical that the net return for New South Wales will be £94 or better, contend that the intrinsic condition for the marketing of foreign bond to consumers in America, are such that to underwrite the issue at these figures is unprofitable. These observers admit, however, that the expectation of becom-

ing permanent American financial agents or advisers to New South Wales may induce the Equitable Trust Company to offer exceptionally attractive terms in the hopes of securing the State of New South Wales’s future American financing. It is believed, furthermore., that the Equitable Trust group has already received an understanding that this will be the case. LATER. The equitable Trust Coy states that the net returns of the New South Wales loan will be considerably better than 93.27 per cent, but the Company declines to say whether it has undertaken to act a’s the permanent financial representative for New South Wales here. Mr Lang’s loan will be offered on Monday. The bonds are dated April 1, 1931. The extra year duration of the present loan is for the purpose of facilitating the future conversion by obviating the necessity for refunding fifty million dollars at one time.

COMMONWEALTH BORROWING.

LONDON, April 8

A Commonw’ealth Converstion Loan of £11,711,000 at five per cent to be issued at £9B, has been underwritten here.

The Commonw’ealth Loan prospectus invites holders of the 51 per cent, stock, maturing on June G to convert into an equal amount of five per cent, maturing in 1945 to 75, receiving a cash payment of two pounds per cent. It also invites cash applications of which the final instalment of ninetythree per cent, is payable on June 1, one month’s interest to be payable on July 1.