LOAN CONVERSION
OFFER TO BOND HOLDERS THE TERMS ANNOUNCED. (British Official Wireless.) RUGBY, March 17. The Bank of England announces the offer of conversion to holders of £116,407,382 of 4} per cent. Treasury bonds, which fall due for repayment on April 15 next. The holders are offered for each £IOO of their holdings £97 12s Gd for the 44 per cent, conversion loan redeemable between 1940 and 1944, or £lO7 for 4 per cent, consolidated loan repayable after 1957. While choice is given to exchange into these securities, holders who prefer it have the right to be paid off in cash. It is understood that at least 90 per cent, of the bonds are held by Government departments, and the public in consequence is concerned to only a small extent. The terms of the conversion offered are virtually equal for both stocks.
The present step is regarded by the press as indicating the confidence of the Treasury in the improving status of British credit. Moreover, it creates a market for the much more ambitious project to convert £2,000,000,000 of the 5 per cent, war loan, which is in contemplation.
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Bibliographic details
Otago Daily Times, Issue 21598, 19 March 1932, Page 11
Word Count
189LOAN CONVERSION Otago Daily Times, Issue 21598, 19 March 1932, Page 11
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