NEW CONVERSION LOAN

Hawera Star, Volume LIII, 29 September 1933, Page 8

NEW CONVERSION LOAN

EXTRA £150,000.000 IN BRITAIN

BIG SAVING IN INTEREST

(Brillsh Official Wireless.)

RUGBY, Sept. 26. Particulars have been announced oi a New Government issue consisting of an addition of -£150,000,000 to the existing 2.V per cent, conversion loan. "1944-49, to be subscribed partly by cash and partly by conversion. The price of issue for cash subscriptions is £94 per cent., giving a yield of £2 13s 2d per cent, interest only, and a yield of £3 3si Id or £2 19s 7d per cent, allowing for redemption ill 1944 or 1949 respectively. The price of the existing loan, of which £55,000,000 had been issued by tender before the weekly issues were suspended at the end of May, is £9-1 7s 9d. Instalments are spread evenly over the next two months, the last payment- being due on December j. The first interest payment of £1 will be paid on April 1, 1934. Holders of 4J,- per cent JFreasury bonds due oil February 1 next may convert their holdings into loan as from October ]. receiving £lO6 7s 6d of (conversion 'Joan for every £IOO nominal of bonds converted, and will receive on February 1 next a- special itncres.t payment of £1 7s 8d per cent., £IOO of such bonds, and on April 1 the full half-year’s dividend on 'he new loan.

The amount of these 4.V per cent, i bonds outstanding is £50.757,000. Mid holders who convert will receive a preferential allotment of conversion loan. The savins: on interest if the whole amount outstanding is converted will he at the rate of £934,246 per annum. Separate prospectuses are being issued by the Post Office and by the trustee savings banks providing for cash subscriptions to the issue of 2i per cent, conversion loan, to he held on the post office register, and for conversion into that issue of 4.V per cent, bonds held on that register. The amount so issued will he additional to the £150,000,000 to be issued through the Bank of England.