asked the Minister for Finance the cost of floating the November 1964 National Loan of £20 million at 6 per cent at £98½ issue under the following headings: (a) the commission paid to the banks, (b) the commission paid to stockbrokers, (c) the amount involved in issuing the loan at £98½ instead of at par, and (d) the cost of advertising.
Ceisteanna—Questions. Oral Answers. - Cost of Flotation of Loans.
29.
Mr. O'Leary
The total cost of floating the issue of £20 million of 6 per cent Exchequer Loan in the autumn of 1964 was £138,585, of which £126,667 represented underwriting and brokerage commissions and the balance of £11,918 other expenses including the cost of advertising.
The amount involved in issuing the loan at 98½ per cent instead of at par was £300,000. This is not, however, part of the cost of floating the issue as it will not become payable until the stock of the loan is being redeemed, and, like the annual interest, is proper to the cost of servicing the loan over its life.
30.
Mr. O'Leary
asked the Minister for Finance the cost of floating the Funding Loan, 1969, of £22½ million at 6 per cent at £97.10 issue under the following headings: (a) commission paid to the banks, (b) commission paid to stockbrokers, (c) the amount involved in issuing the loan at £97.10 instead of at par, and (d) the cost of advertising.
The total cost of floating the issue of £22½ million of 6 per cent Funding Loan, 1969 was £528 of which £400 represented brokerage commission and the balance of £128 other expenses including the cost of advertising. Brokerage commission was not payable on the £20.5 million of the issue taken up by the Banks in replacement of Exchequer Bills already held by them. Also, it was not necessary to underwrite the issue.
The amount involved in issuing the loan at £97½ per cent instead of at par was £562,500. This is not, however, part of the cost of floating the issue as it will not become payable until the stock of the loan is being redeemed, and, like the annual interest, is proper to the cost of servicing the loan over its life.
31.
Mr. O'Leary
asked the Minister for Finance the cost of floating the November 1965 National Loan of £25 million at 6¾ per cent under the following headings: (a) commission paid to the banks, (b) commission paid to stockbrokers, and (c) the cost of advertising.
Accounts in respect of the expenses of the recent issue of the £25 million of 6¾ per cent National Loan have not yet been completed. The total cost of floating the issue is, however, estimated at £153,670 of which £139,948 represents underwriting and brokerage commissions and £13,722 other expenses including the cost of advertising.