NEW ZEALAND LOAN

Otago Daily Times, Issue 21019, 7 May 1930, Page 11

NEW ZEALAND LOAN

QUICKLY OVERSUBSCRIBED. v (United Press Association.) (By Electric Telegraph—Copyright.) ’ LONDON, May 5. The New Zealand loan has been oversubscribed. SUCCESSFUL RESULT.. STATEMENT BY PRIME MINISTER. MONEY EOR PUBLIC 'WORKS. (Peb United Pbess .Association.) WELLINGTON. May 6. The Prime Minister (Sir - Joseph Ward) in a message to-day from Rotorua advises that the new loan of £5,500,000 was placed by the underwriters on the market yesterday. The application lists opened at 9 o’clock ’-and closed at midday with the loan oversubscribed. “The Dominion is to be congratulated, Su Joseph added, ‘‘ on the successful result of this issue, especially when cognisance is taken of the many conflicting factors which . have been operating for some time past on the world’s money markets. , comments of financial authorities in England towards this loan,” he added, are distinctly favourable to New Zealand’s good credit in London and also to New Zealand’s finances generally, ■ “T her Bum raise 3 is required for the Public Works programme' during the current financial year. The-interest rate is 5 per cent., and the issue price £99 per cent., with a currency of 1049. including a redemption discount of £1 per cent, over the period of the loan. The return to investors will be approximately £5 Is 8d per cent. This, while almost a quarter. higher than tha t of the loan of £7,000,000 i n January, 1929, compares very favourably with the return to investors from other recent issues on the London market.” The loan will be allocated as follows Public Works, apd general purposes .. .. .. £4,500,000 Hydro-electric power .. .. 500,000 Railway improvement .. ~ SOO'OOO Total •’ £5,500.000 COMMENT BY MORNING POST. LONDON. May 6. (Received May 6, at 11 p.m.) Though thi) New Zealand loan was oversubscribed within a few hours, the total subscriptions are at present not known. Letters of allocation will be despatched to-morrow. The Morning Post’s financial editor sa y a • The success of the loan confirms the impression that there is ample money available for investment, the demand at present being limited to securities of the safety-first order, among which New Zealand’s reputation desetves a high place.”