CITY WATERWORKS LOAN

New Zealand Herald, Volume LXIV, Issue 19659, 10 June 1927, Page 10

CITY WATERWORKS LOAN

AN OFFER FROM LONDON. CONVERSION OF £107,000. INTEREST AT 5£ PER CENT. ACCEPTANCE ON CONFIRMATION. A statement, on the question of conversion of £107,000 of the waterworks extension loan of £150,000 was made by the Mayor, Mr. G. Baildon, at the meeting of the Auckland City Council last evening. Mr. Baildon said advice had been received that day that, subject to a prompt reply, it might be possible to place the loan privately in London on a 30-years' currency at per cent, per annum, to net the council in Auckland 99j, subject to the co3t of printing debentures, and cables which would result in any flotation, irrespective of price. The cost to the council, inclusive of redemption, would be £5 10s 8d per annum, which was much more advantageous than the recent offer of 5| per cent, per annum, plus charges, from Australia, not only as to interest and charges, but also as regards exchange, which, between Auckland and the two centres, was at present I per cent, in favour of London. The Mayor's recommendation that the offer be accepted if the loan can be placed on the terms stated was adopted. Gratification was expressed by Mr. J. A. C. Allum that it was possible to obtain money at 5| per cent., and he predicted there would be a greater saving than might be apparent on first glance.