Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Commonwealth bond issue in Japan



Download PDFDownload PDF

EMBARGO NOT FOR RELEASE · · · . ·

BEFORE 12.00 NOON '

SATURDAY 14 JAN 1978 · "

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, M.P.

COMMONWEALTH BOND ISSUE IN JAPAN .

The Treasurer, Mr John Howai’ d,· announced today that the .

Commonwealth Government lias filed with.the Japanese Ministry

of Finance a Registration Statement for a public bond issue

on the Tokyo capital market. .

" Mr Howard said that the proposed borrowing is expected to be

effected in February. .

The principal amount will be finally determined closer to

the time of the issue but it is not expected to exceed

¥50 billion (approximately $183 million).

The managing underwriter will be The Nomura Securities Company

Ltd., with The Bank of Tokyo Ltd. acting as lead commissioned

bank

This^proposed borrowing was foreshadowed in a press

statement of 27 September by the then Acting Treasurer,

Mr Robinson. In that statement Mr Robinson said that the

Commonwealth's name was to be placed in the queue of

potential Yen bond issuers on the Tokyo market.

2

Mr Howard recalled that the former Treasurer, Mr Lynch '

had, in press statements of 8 August and 2-5 August 1977?

announced that the Government would be pursuing an on-going

program of overseas borrowings, under which borrowings of

$850 million or more in 1977-78 were being planned.

This policy was founded on the well-established view

that Australia should seek a moderate level of overall < ■

capital inflow on both'private and Government account to

supplement the resources available to the country for

development purposes.

In addition, Mr Lynch had made it clear in those

statements that the Government would not hesitate to

supplement this on-going program with further overseas '

borrowings if this were considered necessary at any time.

Arrangements for such further borrowings over and above

the on-going program were, in fact, made last September

in order that an additional amount of about $850 million . ■ X ' '

would be promptly available to supplement Australia's

international reserves.

Those additional arrangements were announced in the press

statement of 27 September by the then Acting Treasurer . ;v .

Mr Robinson. ’

Mr Howard noted that, when the proposed Yen borrowing has

been completed, about i>600 million of the $850 million or

more that the Government has been planning to borrow in

this financial year under its on-going program will have

been raised. "

3

The Treasurer said the Commonwealth would be continuing

to arrange further borrowings in this and subsequent financial

years in accordance with the policy which his predecessor

had announced* and which he now re-affirmed.

CANBERRA A.C.T.

14 Jan 1978