AUCKLAND POWER BOARD

Wanganui Chronicle, Volume 83, Issue 142, 19 June 1939, Page 11

AUCKLAND POWER BOARD

DEBENTURE ISSUE AT PAR The Auckland Electric Power Board announces a debenture issue at par of £290,000 at 4i per cent., this being the balance of the General Etxension and Improvement Loan, 1928, of £675,000. Owing to the rapid growth of business in recent years, ana the necessity of making provision for further increases as the result of accelerated housing construction and continually increasing demands for power from manufacturing enterprises, the board must forthwith strengthen the undertaking and provide extensions. These plans include capital expenditure on additional plant, sub-station equipment, purchase of indoor and outdoor transformers, reticulation material, etc. Financial provision is also necessary for laying mains when the new Government station is built. The debentures now offered will be isued in denominations of £lOO each, and must be paid in full on application. Interest at the rate of per centum per annum will accrue from the date the debentures are pai<? in full and will be paid half-yearly on December 15 and June 15 in each year at any branch of the Bank of New Zealand, free of exchange. The principal sum will be repaid on June 15, 1959, at any branch of the Banx of New Zealand in New Zealand, free of exchange to the holder. Exchange on all amounts subscribed in the Do-

minion will be borne by the board. The debentures, which are a trustee security, are secured on a special rate of one-fifth of la in the xi or the rateable value of all rateable property in the Auckland Electric Powei Board district, comprising the city oi Auckland and .surrounding ioca. bodies. Against the issue will b< established a sinking fund of 36 pej cent, invested with the Public Trus tee. The total capital expenditure of the board at March 31, 1939, amounted tc £3,628,550. The total Joan indebted ness at the same date was £2,377,800 'I he total accumulated sinking fum available toward the redemption o the loan indebtedness was £1,131,000 This is all invested outside the busi ness. In addition, ioans totalling £385,000 have bv?n completely pai< , off during the last few years.