NEW ZEALAND LOAN.

Poverty Bay Herald, Volume L, Issue 16426, 9 May 1924, Page 6

NEW ZEALAND LOAN.

Till-: FLOTATION A GREAT

SUCCESS

XTNETEEN MILLIONS APPLIED

FOR

PREMIER'S STATEMENT. ,

(Ppr Press Association.) WELLINGTON, last night

Great success has followed the flotation of the New Zealand Government £5.000.000 loan on ' the London. money market, and according to latest advice the issue has been over-subscribed nearly four times. The Prime Minister and the Minister of Finance expressed a high degree of pleasure to-day at the reception with which the loan was received. "The loan was issued at £95 at % per cent, per annum, term 20 years. It was underwritten for issue on the 6th instant, closing Bth instant," said Mr Massey this afternoon. "It was advised tins morning that the approximate amount applied for is over 19 millions up to yesterday, but the lists are being kept open until the country applications have come in. I should not be surprised to find Uie loan go to premium or very nearly so within the next few days. As I anticipated some time ago, the'rates of interest have hardened, and this loan is costing us more than the 1923 loan. Nevertheless, this loan has been raised on better terms than those obtained by any other overseas country during the last twelve months, or really since our last loan was placed on the market, it is not proposed to compound the stamp dutv on this occasion as a saving can be effected thereby. Even if this were included, the rate would be 10s per cent, not 25s as mentioned in a recently-pub-lished financial article. Excluding stamp duty the estimated charges are 355, thus netting on the issue a return of £93 ss. "The money being raised," said the Premier, "is intended for the purpose of Public Works and State Advances, and is allocated as follows: £3,000,000 for public works, and £2,000,000 for State advances. The annual yield to investors will be £4 14s 9d per cent, per ,innum as against £4 6s lid per cent, for the last loan. The annual cost per cent, after allowing for expenses, will be £4 16s Sri as compared with £4 9s 2d last year. These figures do not include provision for redemption."