AUSTRALIAN LOAN

Hokitika Guardian, 14 September 1933, Page 5

AUSTRALIAN LOAN

(LARGE CONVERSION APPROXIMATELY £21*000,000. .United Press Association—By Electric IfciegrajjJj.—Copyright;. LONDON, Sept. 12. Mr Bruce is launching an immediate coi-wiston Joan, following negotiations with the Treasury. The loan will he approximately twenty-one millions, tile terms of which aro already in tue hands of Mr Lyons. It is not only the largest single conversion Air Bruce has undertaken, but is possibly tile largest conversion over underwritten.

Mr Unice intended, until recently, to launch only the- Commonwealth fifteen millions six per cent, but on the (food tide of Australian credit, lie seized the opportunity for adding New South Wales and Western' Australian, 5 3 per cent. The improvement in terms obtainable for the previous conversion in June, is a measure of the progressive improvement . in the Commonwealth credit in London. The Treasury’s ban on conversions is still operative, but is again specially lifted for Australia’s benefit. Outstanding convertible loans are now only thirty-four millions, none of which i 3 above 5J per cent. Further immediate Australian conversions are unlikely, because the big British funding opera* tions are imminent. South Arfica is also anxious immediately to- enter the market.

COMMENT BY MR LYONS

CANBERRA, September 13

The Prime Minister, Rt. Hon. J. Lyons, discussing the loan conversion, said that it was expected that the terms would be 3;} per cent interest at 98 for a term of twenty years, with the option of the Government to repay after fifteen years. The yield to an investor, allowing for the redemption after 20 years, was £3 17s lid per cent. He stated the operation covers fifteen millions of Commonwealth six per cent loan, and £4,901,000 of New South Wales 53 per cent, and £1,050,000 West Australia 53 per cent loans. The terms, therefore, represent an appreciable improvement over the previous long term conversion.

the loan underwritten

LONDON, September 13.

The “Morning Post’s City Editor says: The underwriting of the Australian conversion loan was carried through to-day. It is on the basis of a 21 years period. The new stock will yield the investors £3 17s lOd per cent. The prospectus w.ll be issued on Thursday. The terms are -pretty much in accordance with the market expectations,