SUCCESSFUL ISSUE
NEW ZEALAND LOAN TWO-THIRDS CONVERTED CASH OVER-SUBSCRIBED (Elec. Tel. Copyright—United Press Assn.) (Received Aug. 2, noon.) LONDON. August 1. Financial papers report the success of the New Zealand conversion loan, and state that the underwriters are relieved of their commitments. The Financial News says that applicants up to £IO.OOO received their full allotment, and those for larger’amounts received 96 per cent. Dealings in the stock opened at 3s 9d discount, dropped to 7s 6d, and then ‘allied to 5s discount.
Sir James Parr states that approximately two-thirds of the -holders accepted the conversion offer, and the cash subscriptions for the balance were considerably oversubscribed. He expressed the opinion that this was a highly satisfactory result in view of the market depression caused by events in Austria and Germany, and' Mr. Stanley Baldwin’s rather gloomy picture of the European situation.
The loan was one of £3,989.100 at 4 per cent., which was converted into a 3j per cent, issue, redeemable in 1955-60. The loan was discussed in the 1923 Budget in the following terms: “In order to maintain capital expenditure at the necessary standard a loan of £3,000.000 for public works was raised in London. In addition, LROOO.OOO lias been borrowed for redemption in part of loans maturing in London, making a total issue of £4.000.000. This loan was floated in Mav and issued at £92. rate 4 per cent. It was well received, being oversubscribed, the lists closing three days before the time specified. The loan runs to 1943 with the option for redemption 10 years earlier and the fiat rate is therefore £4 6s lid per cent., or if not redeemed until 1943, the cost is £4 12s 7d per cent.” According to a statement supplementary to the last Budget this is the only sum of any size available for conversion before the end of the present, year. Next vear an amount of £10.135.800, 19'5-45. bearing interest at 5 per cent., will offer for handling.
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Bibliographic details
Poverty Bay Herald, Volume LXI, Issue 18465, 2 August 1934, Page 5
Word Count
328SUCCESSFUL ISSUE Poverty Bay Herald, Volume LXI, Issue 18465, 2 August 1934, Page 5
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