NEW ZEALAND LOAN ISSUE UNDERWRITTEN

Manawatu Times, Volume LIV, Issue 6807, 10 January 1929, Page 8

NEW ZEALAND LOAN ISSUE UNDERWRITTEN

Cash and Conversion CONVERSION OFFER IS LIMITED TO £12,000,000 NEW £7,000,000 AT £95. United Press Association—By Electric Telegraph—Copyright. LONDON, Jan. S. The New Zealand loan has been underwritten. The loan is for £7,000,000 issued at £95 bearing interest at 44 per cent. The final instalment of the New Zealand loan, 35 per cent., is payable on May 2. Allowing for redemption in 1958, tho yield will he £4 16s 5d per cent. Holders of the 4 per cents maturing on November 1, 1929, are invited to convert at the rate of £lO4 5s into the new 44 per cent, stock for every Imndred of'the 4 per cents surrendered. The conversion offer is limited to £12,000,000. Holders on converting will receive on March 1 next four months’ interest, and a full half-year s interest on the 44 per cents will be paid on September 1, 1929. Cash applications will close on January 11 and conversions on January 26.

Favourable Comment LONDON WILL WELCOME ISSUE. Received Wednesday, 8.5 p.m. LONDON, Jan. 9 The newspapers comment favourably on the New Zealand loan. Tho Daily Telegraph says the Dominion always manages its finance* well. The price is indicative of th* lygh credit -which welcomes expenditure there. The Morning Post says the issue will be thoroughly well received on th* market. The Financial News says the appearance of a largo issue with full trustee security is by no means surprising and should go far to dispose of tho November problem. Candour Commended NEW ZEALAND’S HIGH REPUTE AS BORROWER. Australian. Press Association. Received Thursday, 2.0 a.m. LONDON, Jan. 9. The Financial News commends the candour of New Zealand’s full statement of the position of her public debt and sinking fund legislation, which are included in the new loan prospectus. “The statement shows the confidence which ivostors in England all along have had in New Zealand’s credit, has been well -placed. It is decisive proof of New Zealand’s good repute as a borrower that investors holding her public debt have risen from 16.86 pet cent, in 192-i to 42.75 per cent, last March.”

DOMINION’S OBLIGATIONS. During tho current year the Dominion of New Zealand has to meet loans falling 'due in London aggregating £24,322,267. Last year, on May 1, a public works loan for £5,000,000 was raised in Loncbm, the issue prico being £94 10s at 44 per cent., giving a return to the investor of £4 19s 8d per cent as compared with £5 0s lOd for the loan issued in 1927 at £99 10s bearing interest at £5 per cent. Last year’s £5,000,000 loan was over subscribed nearly sixfold, and in view of the new Indian loan last week, for £10,000,000, issued at 91 per cent bearing interest at 44 per cent., it is considered by those in New Zealand competent to judge that the terms of this latest New Zealand loan are quite satisfactory to the Dominion in the present circumstance, and the issue is expected to meet with an excellent reception from the public, considering the good standing of New Zealand in the London money market. The conversion terms are considered attractive to holders of the 4 per cents. There is one point, however, to be considered in connection with demands made and to be made on London by British. Dominions for fresh loans, and that is the maturity on Juno 1 next of the British Government 5 per cent war loan of £2,088,173,683. Australian State loans maturing in London during 1929 will aggregate £24,000,000 in round figures, and include two Victorian loans, one of £5,202,000 at 3 per cent, and onp of £6,125,000 at 3>} per cent. The third is a Queensland loan for £12,700,000, bearing interest at 54 per cent.