THE NEW ZEALAND LOAN.

Lyttelton Times, Volume LXIII, Issue 7484, 25 February 1885, Page 6

THE NEW ZEALAND LOAN.

Although the introduction of a New Zealand Government loan had been for some time anticipated and discussed in financial circles, its announcement so early in the month of January rather startled the city folks. Conflicting rumours had for some weeks been prevalent as to the amount of the impending issue, some reports placing it as high as .£2,500,000, and others at .£1,500,000, so that when it was found that only the modest sum of £1,000,000 was asked for, there was a decided feeling of relief on the Stock Exchange. The terms, too, were considered so reasonable — Q7i per cent for 4 per cent stock—that the loan was at once received with favour, and a successful floating was confidently predicted. The general, belief among financial people in the early part of the week was that an average price of per £IOO bond at least would be readily realised, and the result of the subscriptions show that this estimate was not too > sanguine. The money, it appears, is required for public works and immigration, and other similar purposes, as authorised by J the Loan Act of 1882, and the loan is secured on the Consolidated Fund of New Zealand, which includes the revenues derived from the railways, and from the sales and leases of public lands. The present issue will rank pari passu with the consolidated stock already quoted in the Stock Exchange official list. The principal will be repayable at par on Nov. 1,1926. The books of the stock are, kept at the Bank of England, where all transfers are made, and holders are able, on payment of the usual fees, to take out a stock certificate to the bearer, with the coupons attached, which may be re-inscribed into stock if desired. All transfers and stock certificates are free of stamp duty. The interest will be payable half-yearly at the Bank of England, the first dividend becoming due on May 18 next. The payments on the loan will spread over four equal instalments of £25 each, the last being due on March 30. If paid up in full on or after Jan. 19, a discount at the rate of'4 per cent will be allowed, and the stock so covered may be forthwith inscribed. The tenders were opened this afternoon at the Bank of England, in the presence of a large number of gentlemen interested in the operations. The popularity of the loan was attested by the fact that no fewer than 740 tenders were lodged, amounting to an aggregate of £3,981,000, or nearly four-

fold'the amount required, '; About aniiljtiori. and a quarter was tendered for- at £9B 17s, all of which js excluded from-participat-ing in the allotment. Tenderers at £99 Gs 6d will receive about 30 per cent of the amounts applied for, and applications above that price will receive in full. When the official statement i 3 issued, it will probably be found that the average price realised will not be far short of £99 10s. It is believed that the bulk of the new stock has been secured by the investing classes, to the exclusion of Stock Exchange operators. Argus Correspondent, Jan. 9.