N.Z. LOAN

Hokitika Guardian, 6 May 1930, Page 5

N.Z. LOAN

OVERSUBSCRIBED

[United Press Association—By Electric Telegraph—Copyright.]

(Received this day at ncqn.) LONDON, May 5. The New Zealand loan was oversubscribed.

SIR JOSEPH WARD’S MESSAGE WELLINGTON, May 6.

Sir Joseph Ward, in a message today from Rotorua, advises that tho new loan of 5J millions lias been raised by underwriters on the market yesterday. The application lists were opened at 9 o’clock and closed at midday, with the loan oversubscribed, The Dominion is to be congratulated. Sir Joseph added, on the successful result of this issue, especially when cognisance is taken of the many conflicting factors which Pave been operating for .some thne past on the world’s money markets. The comments of the financial authorities in England towards this loan, added Sir Joseph, are distinctly favourable to New Zealand’s good credit in London, and also to-New Zealand’s finances generally.

The sum raised is required for the public works programme during the current financial year..

The interest rate is 5 per cent, and its issue price £99 per cent., with a currency to 1949, including a redemption discount of £1 per cent, over the period of the loan. The return to investors will be approximately £5 Is 8d per cent. This, vvnile almost a quarter per cent, higher than that of the seven millions loan of January ,1929, compares very favourably with the return to investors from other recent issues on the Lonuon market The loan will be allocated as fol-

lows Public Works and General Purposes, £4,500,000. Hydro Electric Power £500.020. Railway Improvement, £500,000. Total, £5,500,000. .