£100,000 LOAN

Wanganui Chronicle, Volume 73, Issue 428, 20 November 1930, Page 7

£100,000 LOAN

AUCKLAND POWER BOARD. STAND-BY PLANT PURCHASE. [Per Press Association.] AUCKLAND, Nov. 17. The Auckland Power Board accepted an offer to-day of a loan of £lOO,000 at 5 per cent, in London in connection with the purchase of additional plant for the King’s Wharf powerhouse, required owing to the breakdown at Arapuni.

The Board was notified by the Bank of New Zealand that it had received cable advice that Alessrs J. and A. Scrimgeour could sell the Board's debentures privately at 98 per cent., less expenses, amounting approximately tn 2j per cent., for settlement on December 1, interest being payable on June 1 and December 1.

The quotation was for a loan at 5 per cent.

The Board decided to reply that it was prepared to accept the offer of a loan of £lOO,OOO on tho following terms: Discount, 2 per cent.; other expenses, approximately 2$ per cent.; interest at the rate of 5 per cent. This meant that the Board would net £95 5s per £lOO. The chairman, Air W. J. Holdsworth, said the loan would be at about 5J per cent., which was about the best made for some time on the London market. The idea was to get straight out a loan of £lOO,OOO, and there was another proposition for £lOO,OOO, spread over a period. The Board was continuously having to send large sums home which were being killed by exchange. By having credit there the Board would save a considerable amount. The Board had never yet had a. loan costing less than 4 J per cent. Tho offer was a very fair one, considering that some countries were having a difficulty in raising money.