DUNEDIN DRAINAGE BOARD

Otago Daily Times, Issue 21982, 17 June 1933, Page 18

DUNEDIN DRAINAGE BOARD

0 CONVERSION OF LOANS FINANCE COMMITTEE’S RECOMMENDATION. At the meeting of the Dunedin Drainage and Sewerage Board to be held on Wednesday, the Finance Committee will make the following recommendation with respect to fhe conversion of the board’s loans: — ' “ That the necessary steps be taken, pursuant to the Local Authorities’ Interest Reduction and Loans Conversion Act, 1932-33, to obtain the issue of an Order-in-Council authorising the conversion of the whole of the board’s internal loan issue at the rate of 4i per cent. . The amount involved under, such conversion would be £873,000. The conversion proposals, if approved, would enable a rearrangement of maturity dates of the existing loans to be made and would have the effect of stabilising the rate of interest over a fairly long term. It is proposed that for the purpose of the conversion the amount to be converted be arranged into four groups maturing in 1947, 1950, 1953, and 1956, There would be no further certain saving in interest as, in the event of the 4J per cent, rate being lower than the existing rate, less the statutory reduction of 20 per cent, now in force, the difference is to be made good to the investors by way of a cash payment as premium. It is estimated that such premiums would amount to £3252, which would be. payable out of accumulated sinking funds in terms of the Act.”