NEW ZEALAND LOAN.

Otago Daily Times, Issue 19802, 29 May 1926, Page 6

NEW ZEALAND LOAN.

TERMS OE FLOTATION. ALLOCATION OF PROCEEDS. (Per United Press Association.) ■ WELLINGTON. May 28. The Minister of Finance, the Hon W. D. Stewart, announced that the New Zealand loan on the London market will be for £6 000,000. It will be a 5 per cent, issue at £9B 10s. which will give the investors a return of £5 2s 6d per cent, on their investment. . The proceeds will be allotted as tollows: . , Railway construction. additions, an a improvements, £3,000,000. Hydro-electric power, £1,000,000, Telegraph extension, £750,000. Other public works, £1,250,000. FAVOURABLE COMMENT IN WELLINGTON. DETAILS OF RECENT LOANS. (From Oue Own Correspondent.) WELLINGTON, May 28. There is a general favourable comment in the city in regard to the last loan transaction The investors’ return at the price quoted is £5 2s 6d. The following are details of recent loans floated by Dominion Governments in London: '' May, 1925. New Zealand loan of £7,000,000 at 4i per cent, due in 1945, issued at £94 10s; a return per cent, to the lender of £4 IBs 9d (including redemption) ; 85 per cent, left with the underwriters. November, 1925, Union of bouth Africa, £4,000,000 at 5 per cent., 1945-75, issued at £99 10s; a return to the lender of £5 Os 6d. No information as to the result. January, 1926, Queensland, £2,500,000 at 5 per cent. 1940-60. issued at £9B; a return to the lender of £5 2s sd; 63 per cent, left with the underwriters. January. 1926, South Australia, £1,800,000 at 5 per cent., 1945-75. issued at £9B, a return to the lender of £5 2s 3d; 63 per cent, left with the underwriters. . Mnnnrinn March, 1926. New South Wales, £4,000,000 at 5 per cent., 1965, issued at £9B; a return to the lender of £5 2s 4d; 70 per cent, left with the underwriters, May. 1926, New Zealand, £6.000,000. at 5 per cent.,' 1946, issued at £9B 10s; a return of £5 2s 6d. The result will not be known for a few days. The issue date is Mar 27. Where two years for repayment appear in the above table as in the South African and Queensland and South Australian loans it means that the lender has the option of repaying at the earliest date. New Zealand does not borrow on this nrinciple. On April 22 last year’s New Zealand loan was quoted in London at £93 12s 3d per cent, not after allowing for accrued interest, rims giving a return to the investor of £5 0s 9d per cent. Since then there has been no material change in the London money market. That being so should not the return of £5 2s 6d offering on the new loan be attractive? In noting that when last year’s New Zealand loan was issued it remained largely with the underwriters it has to be remembered that that loan was issued shortly after the return to the gold standard.

WELL RECEIVED IN LONDON. TERMS CONSIDERED FAVOURABLE. (Pices Association— By Tnlcgninh— Copyright.) LONDON, May 27. The New Zealand loan of £6,000,000 was well received in London, where financial circles ronsidei the terms favourable. The first instalment of 40 per cent, is payable on July 23 and rhe interest ks payable in January and July. The first payment of the half-year’s interest is due on January I. 1927.-A. and N.Z. Cable.