BRITISH FINANCES

Poverty Bay Herald, Volume LX, Issue 18205, 28 September 1933, Page 7

BRITISH FINANCES

NEW CONVERSION LOAN £150,000,000 INVOLVED INTEREST AT 21 PER CENT (British Oiiiciul Wireless.) Rcc. 10 a.in. RUGBY, Sept. 27. Particulars are announced of a new Government loan issue, consisting of an addition of £150.000,000 to the existing 24 per cent, conversion loan, 1944-49, to be subscribed partly bv cash and partly bv conversion.

The price of Ihe issue for cash subscriptions is £94 per cent., giving a yield of £2 13s 2d per cent, on interest only, and a yield of £3 3s Id. or £2 19s 7d per cent, allowing for redemption in 1944- or .1949 respectively. The price of the. existing loan, of which £55.000,000 had been issued by tender before the, weekly issues were suspended at the end of May, is £94 7s 6(1. The instalments are spread evenly over the next, two months, the last pay meet being due on December 1. The first, interest, payment of £1 will be paid on April 1, 1934. Holders of per cent. Treasury bonds due on February 1 next may convert their holdings into the loan as from October 1, receiving £lO6 7s 6d of conversion loan for every £IOO worth of bonds converted, and will receive on February 1 next a special interest payment, of £1 7s 8d per cent.. £IOO of such bonds, and, on April 1, a full half-year’s dividend on the new loan. The amount of those per cent, bonds outstanding is £50.757,000, and holders who convert will receive preferential allotment of the conversion loan.

The saving on interest, if the whole amount outstanding were converted, will be at tlie rate of £934.246 per annum. •Separate prospectuses are being issued by the Post Office and by trustee savings banks providing for cash subscriptions to the issue of the 2i> per cent, conversion loan, to Ire held on the Post Office register, and for coil version into that issue of 4J per cent, bonds held on that register. The amount so issued will be additional to the £150.000.000 to be issued through the Bank of England.