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DFI 300 million syndicated bank loan in the Netherlands



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TREASURER

EMBARGO NOT FOR RELEASE BEFORE 5.00FM 25 JAN 1979

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP

DF1 300 MILLION SYNDICATED BANK LOAN IN THE NETHERLANDS

The Treasurer, Mr John Howard, today announced that the Commonwealth

had arranged a DF1 300 million (approximately SA1.32 million) bank

loan through a syndicate of Netherlands banks.

Negotiations for the borrowing were concluded with the signing of

loan document ation in Canberra today.

The lenders, each of which provided DF1 75 million, were Algemene

Bank Nederland NV, Amsterdam-Rotterdam Bank NV, Cooperatieve Centrale

Raiffeisen-Boerenleenbank BA and Nederlandsche Middenstandsbank NV,

with Algemene Bank acting as agent for the lenders in the borrowing.

' The loan, which is for a term of ten years, will carry an interest

rate of 9.25 per cent per annum and will be repaid in five equal

annual instalments commencing in January 1985· After taking costs

and commissions into account, the effective cost to the Commonwealth

of the borrowing will be 9·33 per cent per annum.

Terms and conditions of the borrowing, which were settled with the

agreement of the Australian Loan Council, were regarded as very

satisfactory given conditions prevailing in The Netherlands’ capital

NO. 9

market.

2

Mr Howard said that the borrowing was fully consistent with the

Commonwealth's policy of supplementing the level of Australia's

international reserves, as appropriate, through official overseas

borrowing. '

Proceeds of the borrowing will be received on 50 Jan 1979·

CANBERRA ACT 25 Jan 1979