NEW ZEALAND LOAN.

Hawera Star, Volume XLVIII, 11 January 1929, Page 5

NEW ZEALAND LOAN.

CASH PORTION OVERSUBSCRIBED. (Australian Ureas Association —United Service.) Received 10.50 a.m. to.-day. LONDON, Jam 10. The cash portion of the New Zealand loan has been over-subscribed. The information regarding the terms of the loan is not sufficiently complete' to enable, an exact calculation; of their effect (says _the Auckland “Herald”). The instalment payments of cash Subscriptions are to be spread' over 16 •weeks, and the first payment of a hialfyear's interest is apparently to be made on September 1. Presuming that the amounts and the 'dates of the instalment are in the usual proportions, there will be an interest bonus of at least 10s per cent., representing a corresponding reduction in the .price of issue of the stock. On This basis, the return to investors, with redemption in 29 years> would bo about £4 17s 2d per cent. The Government has the right to redeem the loan in 19 years, aind on that basis the effective yield would be £-1 19s 3d per ,cent., as against £4 19s 8d for last year’s loan> which has a currency of 19A years l . The terms of .the conversion offer are more favourable to the Government than last year’s operation. Holders of 1929 stock, up ito £5,000,000, were invited last May to exchange £IOO of 4 per cent, stock into; £lO4 10s of 44 per cent., the higher rate of interest being payable for IS months of the period of the. old loan. ” The present offer is of 104 J per cent, of the new stock, with only eight months’ gain of interest.