NEW ZEALAND LOAN

Stratford Evening Post, Volume XXXXII, Issue 61, 9 May 1924, Page 2

NEW ZEALAND LOAN

£'.9,033, 03j 1.1 TWO DAYS

Per Press Association

Wellingto i, May 8,

Great success has followed the 11. ta Lion of the New Zealand Governmc. loan of 1'd,000,000 on the London market, and according to tho latest advices the issue has been over-subs. ril>?d nearly four times. Tho Prime Minister and Minister for Finance (Hon. W. F. Massey) expressed a high degree of pleasure to-day- at the reception which tho loan had, received. “The Imn was issued at 95 at 4-J per cent. per annum far a term of twenty years, and was underwritten for issue on May 0, closing on May 8,” said Mr Massey this afternoon, “1 was advised this morning that the approximate amount applied far is over nineteen millions up ti yesterday, hut the lists arc being kept open until the country applications have come in. I shoal 1 not bo surprised to find the loan go to premium, o* very nearly so, within the next few days, as i anticipated soma time afto.

“Kates of interest have hardened, and this loan is costing ns more than, the 1923 loan.’ ; continued Mr Massey. “Nevertheless, this loan has been raised o n better terms than those obtained by any other overseas country during the last twelve months, or really si ice our last loan was placed on the market. It is not proposed to compound stamp duty on this occasion, as a saving can be effected thereby. Even if this were included, the rate would he 10s per cent., not 25s as mentioned in a recently published financial article. Excluding the stamp duty, the estimated charges are 355. thus netting on tho issue a return of £93 ss.

“The money being raised is intendfor the purpose of public works and State advances,” added the Premier, “and is allocated as follows; £3,000,000 for public works, and £2,000,000 for advances. The annual yield to investors will he £4 14s 9d per cent, per annum, as against £4 Gs lid per cent, for the last loan. The annual cost per cent, after allowing for expenses will ho £4 16s sd, as compared with £4 9s 2d last year. These figures do not include provision for redemption.” LONDON STOCK EXCHANGE. London, May 4. It is stated that Stock Exchange dealings in the New l ! Zealand £O,000,000 issue will probable not commence before Monday. It is not thought any material premium will ho established ■ >1