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August conversion loan



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NO.

TREASURER

EMBARGO NOT TO BE RELEASED BEFORE 5.00 PM 7 AUG 1979

Ί.ί-fi PRESS RELEASE

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP

AUGUST CONVERSION LOAN

A conversion offer will be made to holders of $64.5 million of

Commonwealth securities which mature on 15 Aug 1979.

The maturing securites are a 6.8 per cent stock issued in 1970 and 1971.

Two securities, with maturities of 1 year 3 months and

6 years 11 months, are being offered to holders of the maturing issue.

They are a 9.9 per cent November 1980 maturity, issued at par, and a

10.0 per cent July 1986 maturity issued at 99.80 per cent to yield

10.04 per cent.

Holders of the securities maturing on 15 August will also have the

opportunity of converting into the current series of Australian Savings

Bonds - Series 14.

As on other recent occasions and consistent with the proposal to replace

the present system of selling Commonwealth Bonds with a "tap” issue

system later this year, there will be no cash loan on this occasion.

However, it is to be noted that Commonwealth Bonds continue to be

available to the market from the Reserve Bank’s portfolio.

2

The conversion offer will close on Friday 31 August.

Terms and conditions of the securities offered in the conversion loan,

which have been agreed by the Loan Council, are set out fully in

prospectuses which are now being circulated to banks and stockbrokers.

CANBERRA ACT

7 Aug 1979