Local Body Loans Attract Interest

Press, Volume CVI, Issue 31108, 11 July 1966, Page 9

Local Body Loans Attract Interest

(By Our Commercial Staff)

Fixed interest stock is attracting more attention from investors and this is being reflected in local body loan Subscriptions.

There was something of a “wait-and-see” attitude early in June, but later in the month, after the Budget, the subscription rate quickened. Local authority spokesmen say that the increase in interest rates has evoked a significant response from investors.

Power Board during June, and in all £60,500 was raised.

The board has now to sell £13,190 to fill the No. 17 Reticulation Loan, and also needs £6900 for the Banks Peninsula Loan.

Only £2OOO was raised by the Heathcote County Council towards its loans during June. This means the council still needs £42,000 for its waterworks loans and £27,000 for its electricity works loan. Paparua County Council raised nothing during June and still has £26,120 outstanding in its £44,000 waterworks supply extension loan and its £20,000 rural townships development loan.

The Ashburton Electric Power and Gas Board opened the first £20,000 section of a £60,000 loan on July 1, and by Friday needed only £7500 to fill it.

The board tries to carry out all its capital works from revenue as much as possible. This year it hopes to finance £60,000 worth of internal spending and no outside finance should be needed until next February. June was quite a satisfactory month for the Lyttelton Harbour Board.

The final £66,640 needed for the first stage of the No. 10 Port Development Loan was subscribed during the month.

The second £250,000 stage of the £500,000 loan has now been opened. Institutional buying helped lift subscriptions to the Central Canterbury Electric