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Commonwealth borrowings in Switzerland



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NO. 19

TREASURER

EMBARGO NOT FOR RELEASE BEFORE 5.00.FM 22 FEBRUARY 1979

PRESS RELEASE

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP

COMMONWEALTH BORROWINGS H SWITZERLAND

The Treasurer, the Hon John Howard, MP, today announced further

details of the Swiss Franc private placement and bank loan

foreshadowed in his press statement of 14 February.

Negotiations with Credit Suisse, Swiss Bank Corporation and Union

Bank of Switzerland were concluded with the signing of loan

documentation in Canberra today.

Each borrowing is for an amount of SF 250 million (approximately

$A 152 million).

The Lank loan which was lead managed by Union Bank of Switzerland

on behalf of the other two banks, carries an interest rate of 5·25

per cent and is due to mature in 1984·

The private placement, which was lead managed by Credit Suisse, is

due to mature in 1986 and carries an interest rate of 5*125 per cent.

Commissions payable on the private placement are 1.75 per cent;

there are no additional costs on the bank loan.

Proceeds of the two borrowings will be received by the end of

February.

2

Further details of the public issue, which was also foreshadowed

in the Treasurer's statement of 14 February, would be provided in

due course on completion of negotiations with Swiss Bank Corporation.

CANBERRA ACT 22 February 1979