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Tap issue stocks and maximum borrowing rates for semi and local government



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NO. 76

TREASURER

EMBARGO IMMEDIATE RELEASE

PRESS RELEASE

STATEMENT BY TEE TREASURER, THE HON JOHN HOWARD, MP

TAP ISSUE .STOCKS AND MAXIMUM BORROWING RATES FOR SEMI AND LOCAL GOVERNMENT . . . ·

The Loan Council has decided that two new tap stocks will he on issue

from the commencement of business Monday, 7 Jul 1980.

The terms and conditions for the new tap stocks are as follows:

Tap Stock N o 4 "

Tap Stock No 5

Maturity Nov 1982 Jun 1990

Coupon Rate 11.5% 1 1 . 7 9 6

Initial Issue Price 99.92 9 9 - 4 5

Initial Yield 1 1 . 5 7 9 6 00 0

Indicative Amount of Stock Available $500 million . $250 million

First Interest 15 Nov 1980 15 Dec ,1980

Payment Date

The initial prices and yields given in the table will apply on the

first day of issue. Subsequent daily prices and yields will be

available from the Reserve Bank. .

It is envisaged that tap stock No 4 will be available to an amount

in the order of $500 million and tap stock No 5 available to an

amount in the order of $250 million. These indicative amounts have

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been determined having regard to the fact that there are large

maturities of Commonwealth bonds in July ($446 million) and September

($583 million).

The stock maturing in July is in three series (8.9%, 9·3%, 9.6%) and

currently 91% of the total on issue is held in official hands. The

stock maturing in September is also held in three series (8.6%, 8.8%, 8.9%)

and 51% of the total on issue is held in official hands.

Farther details of the terms and conditions applying to the tap stocks

are contained in the relevant prospectuses available from the Reserve

Bank.

Tap stock No 3 (May 1986) will remain on issue until further notice.

Maximum interest rates for borrowings by semi-government and local

government authorities will not change with the introduction of the

new tap stocks; but, in accordance with the arrangements agreed by

Loan Council the practice will continue of regular announcements

(normally on a Friday evening) of the maximum semi-government borrowing

rates to apply until further notice. The current maximum rates, which

will remain unaltered until further notice are: '

Currency of Loan Public Loans Private Treaty Loans

(years) (per cent) (per cent)

4 to 9 . 12.2. 12.5

10 and over 12.3 12.6

CANBERRA ACT 7 Jul 1980

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