Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
New series of Australian savings bonds



Download PDFDownload PDF

TREASURER

NO. 199

NOT FOR RELEASE BEFORE EMBARGO 8.00PM ON 6 NOVEMBER, 1981

PRESS RELEASE

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP NEW SERIES OF AUSTRALIAN SAVINGS BONDS

A new series of Australian Savings Bonds - Series 20 - will be

on issue from the commencement of business 9 November, 1981.

The new series will be issued with an interest rate of 12.25

per cent, the same as for Series 19.

Australian Savings Bonds Series 19 needs to be withdrawn for

legal and technical reasons associated with the payment of

its first interest on 1 December, 1981. Since its introduction

on 24 March, 1981 Australian Savings Bonds Series 19 has

attracted gross subscriptions of approximately $ 1,35s million.

During the same period redemptions of Series 19 and earlier

series have totalled approximately $1,520 million.

It has been decided that, with the introduction of Australian

Savings Bonds Series 20, investors in the new series (and in

subsequent series) will be able to reinvest into a later ASB

series without giving one month's notice of their intention to

do so. Currently, ASB holders wishing to reinvest into the latest

series must wait a month before doing so.

This change has been made in order to provide holders of

Australian Savings Bonds with greater flexibility in the

management of their holdings.

2 .

It should be noted however that for legal reasons this

provision cannot apply retrospectively. That is, holders

of Special Bonds and Series 1 to 19 of Australian Savings

Bonds will still be required to give one month's notice if

they wish to reinvest those holdings into Australian Savings

Bonds Series 20 or a later series.

It has also been decided that the maximum individual holding

limit of Australian Savings Bonds and Special Bonds, all series

combined, will be increased to $200,000 from the current level

of $150,000.

The major terms and conditions of issue of Australian Savings

Bonds Series 20 are as follows:

Series 20 Previous Series

Interest Rate 12.25% 12.25%

Interest Rate on Redemptions made prior to first interest payment date unless securities have been held for more than three months 10.5% 10.5%

First Interest Payment Date 1 May, 1982 1 December, 1981

Maturity Date 1 May, 1989 1 December, 1988

Maximum Individual Holding of ASBs and Special Bonds (all series) $200,000 $150,000

Full details of the terms and conditions for Series 20 are

set out in prospectuses now being circulated to banks,

official post offices, stockbrokers and inscribed stock

registries.

CANBERRA ACT 6 November, 1981