N.Z. CONVERSION LOAN

Hawke's Bay Tribune, Volume XXIV, Issue 196, 2 August 1934, Page 7

N.Z. CONVERSION LOAN

Two-thirds of Holders Accept i BALANCE OVER-SUBSCRIBED Dealings at Slight Discount 'By Telegraph—Press Assn.-Copyright.) (Received 2, 11.30 a.m.) LONDON, Aug. 1. Dealings in New Zealand 3} percent, stock, which opened at 3/9 discount and then dropped Io 7/6, rallied to 5/- discount, Sir James I’aiT stales that approximately two-thirds of tho holders accepted the conversion oiler. Cash subscriptions lor tho balance were considerbly over-subscribed. He expressed the opinion that this was a highly satisfactory result in view of the market depression caused by events in Austria and Germany and Mr Baldwin’s rather gloomy picture of theEuropean situation. A cable from London on July 11 stated that tho New Zealand Government was converting £3,989,100 of 4 per cent, bonds into 3| per cents, redeemable 1955-1960, Conversion applications were to close on July 30. Cash applications were invited on July 16 and unconverted amounts will bo repaid on October 15. i The loan was discussed in the 1*923 Budget in the following terms: “In order to maintain capital expenditure at tho necessary standard a loan of £3,000,000 for public works was raised in London. In addition, £1,000,000 has been borrowed for redemption in part of lo: is maturing in London, making a total issue of £4,000,000. This loan was flouted in May and issued at £92, rate 4 per cent. It was well received, being oversubscribed, the lists closing three days before tho time specified. The loan runs to 1943 with the option for redemption 10 years curlier and the flat rate is therefore £t 6/11 per cent., or if not redeemed until 1943, the cost is £4 12/7 per cent.” According to a statement supplementary to the. last Budget this is the only sum of any size available for conversion before the end of the present year. Next year an amount of £10,135,800, 1935-45, bearing interest at 5 per cent., will offer for handling.