NEW ZEALAND LOAN CONVERSION TERMS

Grey River Argus, 19 February 1949, Page 3

NEW ZEALAND LOAN CONVERSION TERMS

LONDON, February 15

The Financial Times says: ‘ The New Zealand 3 per cent. 1973-1977 loan will be the longest-dated New Zealand stock quoted on the Stock Exchange. The longest, dated stock at the moment is the 3 pe?? cent 19631968 for £16,000,000, which was .issued last July in conversion to holders of the 4-1 per cent. 1948-1958 loan. This stock, which was issued al par. is now quoted at £lOl 12s fid. “The public took only 47 per cent of this loan, and the stock' opened at one-eighth discount. This poor result was in part, due to the disturbed state of international politics at that time, and the market view is that a happier result probably awaits the new issue, although recent experience in ihe case cf Australia and British Guiana conversion offers shows that long-dated 3 percent. stocks are not 100 per cent popular with the public. “What the public have not wanted institutions have bees pleased to accept, and fair premiums have been established in 'the market. “When the trms of the new loan became known in the market, Doni nion isues generally were marked down about one-eighth to one-quarter per cent., suggesting that the market had regarded the terms as being a little' favourable compared with th? quoted securities. The market vow was fairly general that in relation to the existing price structure, the terms of the New Zealand issue were ‘on the dot’.”