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Proposed second Australian dollar loan in Europe



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COMMONWEALTH PARLIAMENTARY LIBRARY

FOR PRESS No.1045

. STATEMENT BY THE TREASURER

THE RIGHT HONORABLE HAROLD HOLT, M.P.

PROPOSED SECOND AUSTRALIAN DOLLAR LOAN IN EUROPE

Negotiations have commenced for the i'ssue of a

new Australian dollar loan which is expected to be subscribed

predominantly from European sources. As an initial step, a

preliminary Registration Statement for the issue has been

lodged with the Securities and Exchange Commission in

Washington.

The Treasurer (Mr. Harold Holt) said this morning

that, during his recent visit overseas, he had taken the

opportunity to make a detailed examination of prospects for

Australian Government loans on oversea markets. Apart from

Europe, most markets appeared to be effectively closed to

Australian loans either through official limitations on

foreign borrowings, or by virtue of unusually high interest

rates. Mr. Holt recalled that the first Australian dollar '

loan in Europe had been raised last May. It was very

gratifying in the present state of world markets, he said,

to be able to commence negotiations for another loan in this

market only 6 months later. '

The new loan will be for an amount of #25 million,

the same as the loan raised last May. The interest rate and

issue price will not be determined until negotiations are

completed immediately prior to the proposed offering date of

the loan early in November.

The loan will be for a 20-year period, and proceeds

will be applied to the 1965-66 Commonwealth and State works

and housing programme approved by the Australian Loan Council.

Mr. Holt said that the underwriting group, which

will be headed by Morgan Stanley & Co. of New York, will

include 26 United States investment firms and more than

4o London and European investment and banking firms.

Application will be made to list the new loan

on the New York, London and Amsterdam Stotik Exchanges.

Canberra, A.C.T.

27th October, 1965