REFUNDING LOANS

Northern Advocate, 15 July 1933, Page 9

REFUNDING LOANS

HUGE ISSUE AUSTRALIAN FLOTATION COMPLETING TOTAL OP £56.000,000. BAN SPECIALLY LIFTED.

(British Official Wireless.) (Received 9 a.m.) RUGBY, July 13. The Treasury announces that the Chancellor of the Exchequer, Mr Neville Chamberlain, has agreed to an immediate Commonwealth issue for the purposes of refunding certain Australian loans bearing interest at. a rate of 6 per cent. This exceptional measure in no way implies the withdrawal of the request made on January 14 regarding the optional conversion of trustee securities. An Australian conversion loan of £17,000,000 is to be underwritten tomorrow. The prospectus will be issued on Monday, and the list will be opened on Tuesday and closed the same day for cash applications, and ten days later for conversions. The loan’s being converted are as follows: New South Wales ... £9,527,089 Queensland ........ £2,000,000

South Australia .... £2,977,800 Western Australia .. £2,716,302 Once, again Australia has obtained exceptional treatment by the temporary lifting of the British embargo for this operation, which will complete £50y000,000 of conversions within eight or nine months. Admittedly the market at the moment is not too favourable for the operation, but the opportunity had to be taken to make the issue how, as otherwise it would have entailed waiting two months till the holiday season is over. Then '-Australia would have had to run the risk of other Dominions competing against her in the money market. Holders who do not convert will be paid off on October 15, and cash subscriptions will be utilised only to the extent of the unconverted balance. The yield, aliowihg for redemption in J94S, will be £4 2/ per cent. The Canberra correspondent of the “Daily Telegraph” says that negotiations with London for the conversion of the full.' amount of Australia ’s £32,000,000 six per cent optional stock were proceeding at a late hour las| night. This followed the cabled announcement that the £17,000,000 will be underwritten, probably at 4 per yent.

OPTIMISTIC PROSPECT. PRESS PREDICTIONS. CREDIT STANDS HIGH. . (Received 9 a.m.) LONDON, July 14. The newspapers, in their city columns, give prominence to the, Australian conversion scheme. The “Morning Post’’ says the success of the conversion seems to be assured in advance, by reason of the terms offered. The “Financial Times’ ’ says that the Commonwealth’s loans now may be ranked as the most desirable in the category of investment. The financial ’ editor of the “Daily Herald ’ ’ says that, in view of the big demand for investments in securities of this kind and the recent improvement in Australia’s financial and commercial position, the loan is likely to be a success. '