Financial Notes
BIG GOVERNMENT LOAN.
TuE outstanding feature of the past week has been the issue of the 02,000,000 Loan for electrifying certain suburban sections of the trunk railways. The Loan, which is guaranteed both as to principal and interest by the British Treasury, is in the form of 2 per cents. at 07, the Loan running for a minimum of fifteen and a maximum of twenty years; redemption, of course, will be at par. These terms of issue mean that the investor has only a running yield of about 0 I Is. 6d. per cent., but, given redemption at the earlier of the dates named and the yield would be about 21- per cent. It is a very long time since so large a Loan as 02,000,000; representing not a Conversion Loan but new money, was offered to the public, and while, no doubt, there will be a good response from banking and other financial institutiOns, the market at the time of ;writing is a little uncertain as to the precise extent of the response which Will be given to it, although sooner or later there is no doubt that the Stock will be readily absorbed. Indeed, I should not be surprised if it were to be a success from the start.
Previous page
