AUSTRALIAN conversion

Taranaki Daily News, 15 July 1933, Page 7

AUSTRALIAN conversion

£17,000,000 TRANSACTION LIST TO BE OPENED MONDAY ANTICIPATION OF SUCCESS THE TERMS FAVOURABLE By Telegraph—Press Assn.—Copyright Rec. 10 p.m. London, July 13. The Australian £17,000,000 conversion loan is being underwritten on July 14 and the prospectus is being issued on Monday. The list opens 'on Tuesday, closing the same day for cash applications and ten days later for conversions. The loans being converted are £9,527,089 New South Wales, £2,000,000 Queensland, £2,977,800 South Australian and £2,716,302 Western Australian. Once again Australia has obtained exceptional treatment by a temporary lifting of the British embargo for its £17,000,000 operation, which completes £50,000,000 in conversions within eight or nine months. Admittedly the market at the moment is not too favourable for the operation but the opportunity had to be taken to make the issue now as otherwise it would have entailed waiting a couple of months till the holiday season was over, when Australia would have had to run the risk of other Dominions competing, in the money market. Newspapers in the City columns give prominence to the conversion. The Morning Post says successful conversion seems assured in advance by reasons of the terms offered.

“The Chancellor of the Exchequer has agreed to an immediate Commonwealth of. Australia issue for the purposes of refunding certain Australian loans bearing interest at 6 per cent.” the Treasury announces. “This exceptional measure in no way implies withdrawal of the request made on January 14 regarding optional conversion of trustee securities.”