Cash Or Conversion Offered For Loan Of £8,931,900

Northern Advocate, 19 December 1945, Page 5

Cash Or Conversion Offered For Loan Of £8,931,900

The intention of the Government to exercise its option to repay on or after April 15 of next year the internal 4 per cent loan, totalling £8,931,900, maturing on April 15, 1949, was announced by the Minister for Finance (Hon. W. Nash) last evening. He added that the Government was offering conversion, the particulars of which would be contained in a prospectus to be issued early in the new year.

“This week’s Gazette will contain the formal notice of intention to repay the loan on April 15, 1946, and also the Order-in-Council authorising the conversion offer,” said the Minister. “The offer of conversion will be open for one month—that is, from January 15 until February 15, and holders of existing securities are entitled to apply, but not later than February 15, 1946, for conversion of their existing securities at par into the new securities being offered—namely. 3 per cent stock maturing on April 15. 1960-63. Those holders who do not accept the conversion offer will be repaid in cash on April 15 next. “As regards holders of death duty stock in the present loan, the same concession will be available in the case of such persons converting' into the issues, so that the stock will still be available at par for payment of death duties in the event of the holder dying before the loan matures. NO PREMIUM “No premium is attached to the conversion offer on this occasion,” continued Mr Nash, “as the Government

((Special.) WELLINGTON, This Day

considers that conversion at par is reasonable and in keeping with present-day market conditions. “Forms of application for conversion, together with a copy of the prospectus, will be posted to stock-holders early In January and debentureholders who do not thus receive a copy through the post can obtain one from the. Reserve Bank af Wellington, the district Treasury offices' at Auckland. Christchurch or Dunedin, from any trading or trustee savings bank, postal money-order office, or from members of the Stock Exchange. '“I feel sure,” said the Minister, “that the big majority of the holders of existing securities will apply for conversion and that the result xvill be in keeping with the Dominion’s previous successful conversion loan operations.”

The loan due for redemption is part of the locally-domiciled debt which, bearing interest higher than 4 per cent was successfully converted in the early pars of 1933. The scheme applied to some £115,000,000 of: public debt and dissents expressed involved only £480,000. This dissented portion was made subject to an interest-tax of 33 1-3 per cent. The new securities were: spread over six maturity dates and all were subject to the option of redemption at any time within three years prior to the maturity, dates. The Minister’s proposal has been anticipated by the market, as the current market price of the stock involved is £IOO/10/-, this price including 14/accrued interest. ■ • T 3