BRITISH CONVERSION LOAN.

New Zealand Herald, Volume LXIII, Issue 19469, 27 October 1926, Page 11

BRITISH CONVERSION LOAN.

.MATURING TREASURY BONDS. THREE-FOURTHS SUBSCRIBED. A. and N.Z. LONDON, Oct. 25. The result is announced of the Treasury's invitation to holders of 5 per cent. Treasury bonds which mature on February 1, 1927, to convert their holdings into 4£ per cent, stock maturing in 1934. The proposal was announced on September 29, the new stock being offered in exchange for the maturing bonds at par, with a cash payment of £1 for every £IOO bond surrendered. The total amount of the bonds outstanding is £109,600,000, and holders of £82,7000,000 have agreed to the conversion in the terms of the Treasury's offer. Ap was explained when the offer was announced, the operation was remarkable for the reasons that the new stock has a short period and that the terms of exchange were fixed, whereas recent conversion operations have been conducted upon the basis of tenders for 3£ per cenfc. conversion loan, which is redeemable by 1961 or after. Last year's conversion loans were all fully subscribed, but the amount now offered is 75 per cent, of the total required. This will probably be regarded as a satisfactory result in view of the prevailing conditions in England and the reduction in the interest rate, since the effective yield on the amount reinvested is only £4 13s 5d per cent.