BIG DEBENTURE DEAL
TRANSPORT BOARD SELLS £IIO,OOO AT 52 INTEREST RATE ADVANCED A large financial institution has bought £IIO.OOO worth of Auckland Transport Board debentures. The board will pay 5J per cent, on the issue. The sum thus borrowed is part of the board’s 1929 loan of £526.090. and ihe rate of interest higher than that ottered on a previous issue of £50.000, when the board had no difficulty in selling debentures over the counter to that value at 5 I S per cent. Since that issue, however, the Minister of Finance, Sir Joseph Ward, has offered Government debentures at 5i per cent. The board, in common with other local authorities, has" found it necessary to go higher in order to float its loans. Mr. E. J. Phelan, who felt that the institution concerned in this morning's deal was getting a good thing, warned to know whether the board contemplated offering 5| per cent, to those investors who had taken up debentures at 5 1-8 per cent. Voices: Certainly not. Mr. Phelan said he had been informed on authority that plenty of money was to be had at £5 10s per cent. x Mr. Baildon: Five and three-quarter was the best we could do.
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Bibliographic details
Sun (Auckland), Volume III, Issue 900, 18 February 1930, Page 11
Word Count
204BIG DEBENTURE DEAL Sun (Auckland), Volume III, Issue 900, 18 February 1930, Page 11
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