NEW ZEALAND LOAN

Gisborne Times, Volume LX, Issue 9800, 9 May 1924, Page 4

NEW ZEALAND LOAN

ISSUE OVERSUBSCRIBED. LONDON, May 7. It is stated that Stock Exchangedealings in the New Zealand five million issue will probably not commence h t r ns mTthought that any material premium will be May"? I '' The New Zealand loan has been over-subscribed. —A. and N.Z.C.A.

APPLICATIONS ALREADY TOTAL £19,000,000.

PREMIER GRATIFIED AT SUCCESS. '

WELLINGTON, May 8. Great success has followed the flotation of the New Zealand Government £5 000,000 loan on tho London moncy market and according to latest advice the issue has been over-subscribed nearly four times. The Prime .Minister arid the Minister of Finance ex- * pressed a high degree of pleasure today at the reception with which cue loan was received. “Ihe loan r.as issued at '£9-5 at 4* per cent per annum, term 20 years. It was underwritten for, issue on the 6th instant, closing Bth instant,” said Mr Massey, this afternoon. “1 was advised Inis morning that the approximate amount applied for is over 19 millions up to yesterday, but the lists are being kept open until tho country applications have come in. I should not be surprised to find the loan go to premium of verv nearly so within the next *ew days. " As L anticipated some time a«-o the rates of interest have hardened and this loan is costing us more than’ the 1923 loan. Nevertheless, this loan has been raised on better terms than those obtained by any other overseas country during the ast twelve months, or really since our last loan was placed on the market. It is not proposed to compound the stanjp duty on this occasion as a saying can be effected thereby. this were included the rate would be 10s per cent, not 25s as mentioned in a recently published financial artiCie. Excluding stamp duty the estimated charges are 355, thus netting on the issue a icturn of £93 ss. ••The money being raised. ’ said the premier, “is intended for the purpose of Public Works and State Advances, and is allocated as foJows: £3.00 j,OOO for public works, and £2,000,000 for State advances. The annual yield to investors will lie £4 14s 9d per cent per annum as against £4 6s lid, per cent for the last lean, lho annual cost per cent., after allowing lor expenses, will be £4 16s 5d as compared with £4 9s 2d last year. These figures do not include provision for redemption.”—P. A.