AUSTRALIAN LOANS

New Zealand Herald, Volume LXXIII, Issue 22437, 5 June 1936, Page 11

AUSTRALIAN LOANS

CONVERSION PROPOSAL THE FINAL OPERATION RECORD LOW INTEREST LONDON, June 3 The High Commissioner for Australia, Mr. S. M. Bruce, announces the underwriting to-morrow of a loan of £16,551,403 at 2J per cent at £99 maturing 1941-43, for the conversion of the following issues: New South Wales, £10,954.600 at 4} per cent; South Australia, £2,368,141 at 5 per eent; Western Australia, £2,631,165 at 4} per cent; and Western Australia, £597,497 at 3 per cent.

The South Australian and the smaller Western Australian loan will mature on July 1 and December 1 respectively, and the others are optional. However, Mr. Bruce decided in favour of a large issue, which ends his programme totalling £198,000,000 since October, 1932, with a total annual interest saving of £3,979,000 Australian currency. This final operation is believed to be the lowest rate of interest touched by Australia in modern times, and gives a yield to redemption date of £2 18s 6d. The prospectus will be published on j Monday, and the loan will open ahd close for cash on Tuesday.

The cable message speaks of Mr. Bruce having ended his programme of conversions totalling £198,000,000 since October, 1932. The figure gives correctly the amount of loan money, with definite maturity dates or redemption options, handled in London in the period mentioned, but it does not follow that no loans remain to be dealt with. In the last Federal Budget there was given a list of maturities and options covering loanu. to a total value of £64,637,000. A conversion operation last January dealt with £21,657,000. This, with the additional £16,551,0(X) now being handled, reduces the figure to £26.289,000. The maturities, interest and amounts of the various loans remaining are as follows: — Maturing Int. p.c. Prin. 1936-37 3J £12,361,000 1937-38 3} . 11,410,000 1939 3i 2,518,000 £26,289,000