SOUTH AFRICAN LOAN.

New Zealand Herald, Volume LXII, Issue 19081, 28 July 1925, Page 9

SOUTH AFRICAN LOAN.

FOUR MILLIONS IN LONDON.

RECENT TERMS SLIGHTLY VARIED

Australian and N.Z. CisbJe Aasociation. (Heed. 5.5 p.m.) LONDON, July 27. The Financial News, commenting upon the issuo to-day of a 000,000 loan for South Africa in 5 per cent, stock at says tho finit iutercst (30a) will bo payable in January. This will make tho stock ono per cent, dearer than tho Australian loan. Tho latter paid a full half-year's interest and consequently the offer was over-subscribed. South Africa should havo dono the same.

Tho last issue in London by South Africa was made in October when £8,000,000 of 5 per cent, stock were offered at 99J, the period of the loan being 36 years. Tho first payment of six months interest was not made until eight months after the issue of tho loan, but as against that, payments of calls were spread over three months. The return to tho iuvostor was only a few pence over 5 per cent. In spito of tho distraction of the general election, the loan was subscribed threefold. Unless there is some compensation tho_ instalment provisions, the loss of interest described in tho cablu JRessaga would bring the cost of tho stock to a premium, reducing the effective rate below 5 per tent. Over such long periods the variation of 1 per cent, in tho price makes a difference of about Is 3d in tho interest return to tho investor.