AUSTRALIAN LOANS

Dominion, Volume 21, Issue 112, 9 February 1928, Page 11

AUSTRALIAN LOANS

TWO BEING PLACED IN NEW YORK

BRISBANE AND FEDERAL GOVERNMENT

New York, February 7.

It is understood that within a few hours contracts will be signed for a 7,500,000-dollar loan for Brisbane, the Commonwealth Bank Agency being the fiscal agents, and the Lee, Higginson Company the underwriters of the loan, which is unconditionally guaranteed by Queensland. The Financial News Service and tickers ( this afternoon earned the following: “Banking-house reports are that the Commonwealth has arranged for a loan ranging from 50 to 75 million dollars with New York bankers.” The Australian Press Association could get no information on the matter. The persistency of the reports that the Commonwealth is financing is taken to indicate that informal inquiries have probably been made with the J. P. Morgan Company concerning present market conditions, and the local market is taking this to mean that a new loan is impending. Rumours are also circulating that, while the last Commonwealth loan has been selling slightIv above par, and has been well supported by the underwriters, the. latter feel that any new flotation cannot be undertaken save at slightly higher terms than the last.

TERMS OF COMMONWEALTH LOAN

New York, February 7

The Australian Press Association learns on good authority that an agreement was concluded to-day between the Commonwealth and J. P. Morgan and the National City Bank for a thirtyyear loan of between 50 and 75 million dollars, the exact sum to be determined later, at 5 per cent., issued at 98.

YIELD OF BRISBANE LOAN (Rec. February 8, 9.30 p.m.) New York, February 7. The contract for the Brisbane 5 per cent, loan has just been signed at 94J, yielding over 5.35 per cent.