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Commonwealth deutsche mark 300 million borrowing



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TREASURER

PRESS RELEASE NO. 90

EMBARGO FOR RELEASE NOT BEFORE 9-00 A.M. 6 SEPTEMBER 1978

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, HP

COMMONWEALTH DEUTSCHE MARK 300 MILLION BORROWING

The Treasurer, Mr John Howard, today announced that negotiations

with Deutsche Bank for a Deutsche Mark public bond issue of

DM 250 million (!ίΑ110 million) and a direct bank loan of DM 50

million (SA22 million) had been completed with the signing of

loan agreements in Frankfurt late yesterday. '

Mr Howard said that the public bond issue would have a period to

maturity of ten years and carry a coupon rate of 6 per cent and

an issue price of par.

The bank loan would mature in 1986.

After taking commissions into account, the cost to the Commonwealth

for the public issue and direct bank loan would be 6.31 per cent

and 6.96 per cent, per annum, respectively.

I

The terms of both loans were very favourable in the light of market

circumstances and as such reflected Australia's strong standing in

international capital markets.

The Treasurer said that this borrowing was part of the

Government's on-going program of seeking capital overseas as

appropriate to supplement Australia's international reserves

The proceeds would form part of the Commonwealth's borrowing

program for the fiscal year ended 30 June 1979.

V

CANBERRA ACT 6 September 1978