LOAN CONVERSION

Hokitika Guardian, 28 September 1933, Page 5

LOAN CONVERSION

A BRITISH SUCCESS LOW PRICE OF ISSUE. ( (Per British Official Wireless.) / RUGBY, September 26. Particulars are announced of a 1 new Government loan issue, consisting of an addition of 150 milt.ons to* the existing Conversion Lohn, 194049. The new issue is to be subscribed partly by cash and partly my conversion. i ■ The price of the issue for cash to ] the subscribers is. to be 94 per cent., thus giving a yield of £2 13s 2d per cent, in interest only, and a yield of £3 3s Id, 1 or £2 19s- 7d per cent., allowing for redemption iii 1944 ox--1949, respectively.

The price of the existing loan, of which £55 millions had been issued by tender before the' weekly issues were suspended at the end of May, js 94|. The' instalments ,are spread evenly over the next two months, the last payment being due on the Ist of December. The first interest payment, of £1 will be paid on the first of April, 1934. Holders of 41 per cent. Treasury Bonds, due on the first, of February next, may convert their holdings into the new loan ns from the' first of October, receiving £lO6 7s 6d of the Conversion Loan for every £IOO nominal of the bonds converted, and will receive on the first of February next a special interest payment of £1 7s 8d per cent., on each £IOO of such bonds, and on the first of Apr':!, a full half-year’s dividend on the new loan. The amount on these 41 per cent, bonds outstanding is £50,557,000, and-those holders who convert will receive ft’ preferential allottment of Conversion Loan.

'The saving "of the Treasury in interest, if the - whole amounts, outstanding are converted, will" be at the rate of £934,246 . per annum.

- A separate prospectus is being now issued byi the Post Office land by the Trustee jSavings Banks providing for cash, subscriptions to an issue of 2? per cent’’ Conversion Loan, to be held on the Office register, and for conversion into that issue .’of 41 per cent, bonds; held on that register. The amount ;so "issued is to Be_ additional to the .150 j millions, which is to be issued through the Bank of England.

AUSTRALIA’S EASY SUCCESS • SYDNEY, September 27. The “My ; Mail” says: “The Commonwealth " lioari' Conversion has closed ill -a. triumph, and it deflects the. greatest credit on Mr Btiice and all othei-S concerned.