THE £5,000,000 LOAN

Wanganui Chronicle, Volume LXXXI, Issue 19009, 9 May 1924, Page 5

THE £5,000,000 LOAN

HIGHLY SUCCESSFUL FLOTATION STATEMENT BY PRIME MINISTER (Per Press Association.) WELLINGTON, May 8. Great success has followed the flotation of the New' Zealand Government £5,000,000 loan on the London market, and according to latest advices the issue has been over subscribed nearly four times. The Prime Minister and Minister of Finance expressed a high degree of pleasure to-day at the reception which the loan has received. “The loan was issued at 95 at 41 per cent, per annum, for a term of 20 years, It was underwritten for issue on the sth inst., closing on the Bth inst.,” said Mr Massay this afternoon. “I was advised this morning that the approximate amount applied for is over 19 millions up to yesterday, but the lists are being kept open until country applications have come in. I should not be surprised to find the loan go to a premium or very nearly so within the next few days. As I anticipated some time ago, the rates of interest have hardened, and this loan is costing us more than the 1923 loan. Nevertheless this loan has been raised on better terms than those obtained by any other overseas country during the last twelve months, or really since our last loan wns placed on the market. It is not proposed to compound the stamp duty on this occasion, as a saving can be effected thereby. Even if this were included, the rate would be 10s per cent., not 25s as mentioned in a recently published financial article. Excluding stamp duty, the estimated charges are 355, thus netting on issue a return of £93 ss. The money being raised is intended for the purpose of public works and State Advances, and is allocated., as follows: £3,000,000 for public works and £2,000,000 for advances. The annual yield to investors will be £4 14s 9d per cent, per annum, as against £4 6s lid per cent, for the last loan. The annual cost per cent, after allowing for expenses will bo £4 16s 5d as compared with £4 9s 2d last year. These figures do not include provision for redemption. ’ ’