NEW ZEALAND LOAN
SECURITY ATTRACTION. COUNTRY ’S HIGH REPUTATION. (Received N.Jfi a.m.) « • LONDON, May 6. Though the New Zealand loan was over-,subscribed within a few hours the total subscriptions are at present unknown. The letters off allotment are being despatched tomorrow morning. The applications were more numerous and the total subscription larger than anticipated when the list closed. The financial editor of the “Morning Post” says: “The success of the loan confirms the impression that there is ample money available for investment, the demand at present being limited to securities of the ‘safety first’ order, among which Now Zealand’s reputation deserves a high place. ”
QUICKLY SUBSCRIBED. COMMENT BY PRIME MINISTER. (Per. Press Association.—Copyright-) WELLINGTON, Tuesday. Sir Joseph Ward in .a message today ,'riira Rotorua advised that a new loan of £5,500,000 was placed by the underwriters on the market yesterday. Application lists opened at 9 o’clock and closed at midday with the loan over subscribed. “The Dominion is to be 'Congratulated,” Sir Joseph added, “on the successful result of this issue, especially when cognisance is taken of the many .conflicting factors which have been operating for some time past on the world’s money markets.
"The comments of financial authorities in England towards this loan,” added Sir Joseph, "are distinctly favourable to New Zealand’s good credit in London, and also to New Zealand’s finances generally. The sum raised is required for the public works programme during the current financial year. The interest rate is 5 per cent and the issue price £O9 per cent, with •currency to 1949, including redemption .discount (of - £1 per cent, "Over the period of the loan the return to investors 'will bo approximately £5 1/8 per cent. , This, while almost a quarter per cent higher than that of the £7,000,000 Iqan of January, 1929, compares very favourably with the return to investors from other recent issues on the London market. * ! The loan will be allocated as follows:—Public works and general purposes, £4,500,000; hydro-electric power, £500,000; railway improvement, £500,000.” ■ '
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Northern Advocate, 7 May 1930, Page 6
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332NEW ZEALAND LOAN Northern Advocate, 7 May 1930, Page 6
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