A NEW LOAN

Evening Post, Volume CIX, Issue 101, 1 May 1930, Page 14

A NEW LOAN

i5,500,G00 BEING RAISED

ATTEACTIVE OFFEE

MEETING SHORT-TERM DEBT

United Press Association—By Electric Tele- . graph—Copyright. (Received Ist May, 1 p.m.) LONDON, This Day. The "Daily Telegraph's" financial writer says that a New Zealand loan for £5,500,000 at 5 per cent., inscribed 1949, is being underwritten at ninety-nine. Parl: of the money is required to meet short-term maturing debt. ' New Zealand, says the "Telegraph," is always a popular borrower in London. While the depression in the pastoral industry has affected exchange, the high standing of New Zealand credit is evidenced by the quotations for its outstanding loans. [From all that can be ascertained at this end, the loan should appeal to investors. It will yield (including redemption) £5 Is 8d per cent., which is rather more attractive than the return on New Zealand loans quoted in London at the end of last week as follows: — Yield Loan. ' percent. £ s. d. 6 per cent., 1936-51 ....... 417 0 3J per ce.nt., 1940 4 17 6 3 per cent., 1945 4 17 6 4J per cent., 1949-58. 419 0 It ia probable that the short-term maturing debt referred to consists of short-dated treasury bills. It is not expected that any of the proceeds of the loan will come out to the Dominion,/ although it would provide funds for j ; the Government in London, where it is very desirable to have funds at the present time. The flotation of the loan referred to is not expected to have any influence on the exchange market.]