NEW ZEALAND'S LOAN

Sun (Auckland), Volume III, Issue 784, 3 October 1929, Page 1

NEW ZEALAND'S LOAN

APPLICATIONS MADE FOR £3,500,000 SEVEN-TENTHS OF TOTAL Australian and X.Z % Press Association Reed. 10 a.m. LONDON, Wednesday. It is officially stated that applications for the New Zealand 4 per cent, conversion loan were approximately £3,500,000. The amount of the loan is £5,000,000. The “Financial News” had stated yesterday that the underwriters expected to be left with from 40 to 50 per cent, of the amount. The Government invited holders of £5,000,000 of 4 per cent, stock maturing on November 1 to accept in exchange 5 per cent. 1935-45 stock at the rate of £IOO of the new stock, together with a cash bonus of £2 for £IOO of the maturing stock, or £IOO of the new stock for £9B of the old stock. Arrangements were made by the Government to pay off the balance of the maturing debt, about £4,700,000, on November 1. The Hatry collapse, and the raising of the bank rate to 6| per cent., would adversely affect the response to the loan. The financial correspondent of the “Morning Post” says that despite most unfavourable conditions on the market while the lists were open, New Zealand’s conversion offer met with a very satisfactory response in the circumstances. SIR JOSEPH SATISFIED ADVERSE CIRCUMSTANCES OF THE CONVERSION INCREASE IN BANK RATE THE SUN’S Parliamentary Reporter PARLIAMENT BLDGS., Today. The loan conversion operations in London are regarded with satisfaction by the Prime Minister, Sir Joseph Ward. “With reference to the recent conversion offer of £5,000,000 of our consolidated stock, maturing on November 1,” he said, “my advices indicate that the underwriters will be left with about 30 per cent. In view of all the circumstances, and the increase in the Bank of England discount rate to 6£ per cent, during the offer, the result is satisfactory.

“The whole transaction of converting £29,000,000 is. now practically effected, as arrangements to deal with the outstanding £ 4,700,000 in November have been completed. “One important feature of the transaction has been the ability of this country to redeem a substantial amount from local issues during the past 12 months.”