Hang Hang
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Hansard Repor
5. 3+
HONG KONG LEGISLATIVE COUNCIL.
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The price of issue has been fixed at 99%, the bonds giving a flat yield of 3.535% or allowing for redemption over the full period of 25 years of 3.565%. The issue of $14,000,000 has been under- written without expense to the Government, and of this amount $9,000,000 has already been taken up leaving $5,000,000 to the public from whom subscriptions will be invited in about two weeks.
The bonds will be in bearer form and in amounts of $1,000, $5,000 and $10,000 with interest coupons attached. No sinking fund will be established, but amortization is provided by annual drawings of 1/25th of the amount issued. The first drawing will take place next year when bonds to the face value of 1/25th of $14,000,000 will be repaid on the 15th July, 1935. It will be seen, therefore, that the whole of this issue will be paid off in 25 years.
With the Sterling loan paid off the Colony's public debt at the end of this year will stand at $4,838,000 in 4% bonds (redemption loan 1933) repayable at par in 1953 and $14,000,000 in 32% bonds repayable as above in 25 years, a total debt of $18,838,000 which is only a little more than one half of the Colony's present yearly revenue.
Particulars as to method of application, deposit required, together with forms of application for the bonds will be issued when this bill is passed. The loan will be domiciled at the Hong Kong office of the Chartered Bank of India, Australia and China.
THE COLONIAL SECRETARY seconded, and the Bill was read a first time.
Objects and Reasons,
The "Objects and Reasons" for the Bill were stated as follows:-
1. The Object of this Ordinance is to empower the Governor to raise a loan of $25,000,000 for the purposes specified in the Schedule. It is estimated that by the end of 1934 between ten and eleven million dollars will have been advanced out of surplus balances on account of public works, while a further $3,400,000 approximately will be required to pay off the Hong Kong Sterling 3%% Inscribed Stock 1918/1943. Thus by the end of 1934 some $14,000,000 will be required to liquidate the position. The remain- ing $11,000,000 will be expended in the following three or four years in completing the various schemes.
2. As it is obviously impossible to foresee the exact expenditure that will be incurred on each item, provision is made in section 3 (2) for the transfer of money from one item in the
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