LOAN SUCCESS

Taranaki Daily News, 3 June 1933, Page 7

LOAN SUCCESS

AUSTRALIAN CONVERSION LONDON’S PROMPT RESPONSE HEAVY OVER-SUBSCRIPTION SAVING TO COMMONWEALTH PROSPECT OF LATER LOANS By Telegraph—Press Assn.—Copyright London, June 1. The Commonwealth £11,000,000 conversion loan was heavily over-sub-scribed. The list of cash applications closed after two hours. Financial circles are gratified at the prompt success of the loan and regard it as a distinct encouragement for Australia to proceed as early as possible with the conversion of other high interest-bearing stocks. The amount of the conversion comprises £6,400,000 of New South Wales stock, • £3,000,000 of South Australian and £2,000,000 of Tasmanian. These are all optional maturities carrying 6J per cent. The exact amount being converted, is £11,409,965 of 6J per cent, stock and the new rate will be 3J per cent, at £99. The yield to investors, including redemption, will be £3 14s 5d per cent. The conversion, which has the consent of the British Treasury, will result in a saving to Australia at current exchange rates of £396,000. The new loan will mature on March 1, 1938, with the option of redemption in March, 1937. Details are not being announced until after the allotments have been made on June 10.