CITY LOANS IN LONDON.

New Zealand Herald, Volume LXIII, Issue 19236, 27 January 1926, Page 10

CITY LOANS IN LONDON.

THE AUCKLAND ISSUE. s ONE-THIRD SUBSCRIBED. UNDERWRITERS TAKE REST. (Received 5.5 p.m.) Sun. LONDON. Jan. 25. One-third of the City of Auckland loan of £400,000 has been subscribed by the public, leaving 66 per cent, to the underwriters. The loan was in 5 per cent, stock, issued at 97, at which price, including bonus on redemption in 33 years, the return to the investor will be £5 5s 9d per cent. Half the loan is to provide for capital expenditure oil tramways and waterworks extensions and the balance for street paving and other works. LOAN FOR WELLINGTON. £330,000 ISSUE LAST MONTH. WHOLE AMOUNT SUBSCRIBED. Advice regarding the issue of a 5 per cent, loan of £330,000 for the Wellington City Council in London last month has been received by the Mayor of Wellington, Mr. C. «T. B. Norwood. Ho stated on Monday that the whole amount, which w:: s issued at 98, had been taken up by the market.

Mr. Norwood's advice from the Union Bank of Australia, who put the loan through their London brokers, Messrs. R. Nivinson and Co., was to the effect that the loan was offered on December 7 and met with a fine response from the public, who subscribed £198,700 of the total, after which investing friends of the brokers came in and took the remainder, so that the underwriters were not called upon fo take up any of the loan. In other words, the loan was fully subscribed, which, in the opinion of the bank, was a very satisfactory result, in view of the fact that the Bank of England rate had been raised from 4 to 5 per cent, on the day the loan was issued. This factor, to a certain extent, must nave detracted (from the public point of view) from the favourable terms accorded to the Wellington City Council. The issue comprised the Wellington city street widening loan, 1925 (renewal), of £200,000, redeemable on March 31, 1949, and the Wellington city and suburban highways loan, 1924, redeemable on March 31, 1950.