Nisw 'CAperAL
Of the manyeatiital flotations during-the.Past week, not the least attractive_is-the loan being made for Peru. At the time of writing, the formal prospectus has not yet made its app,trancerlipt, the-underynitingArrangemenishave disclosed the general character of the tetras. • The London portion of the issue for £2,000,000 is in 6 per cents. at the price of 91, and more than one-half of the proceeds will go towards redeeming outstanding sterling obligations. The Bonds give a flat yield to the investor of £6 13s. per cent., but, on the basis of the average length of maturity, the yield is over 61 per cent. There will be a Sinking Fund of about 1 per cent., operating by half-yearly drawings at par, and, inasmuch as these drawings begin next March and the price of issue is 91, it will be seen that, in themselves, the drawings constitute one of the attractive features of the loan. Details as regards the revenues of Peru are also satisfactory.
* * * *
Previous page
