DUTCH STATE LOAN RAISES 3.25 BILLION GUILDERS
The Dutch Finance Ministry said it
accepted bids totalling 3.25 billion guilders on its 6.25 pct
bullet bond due 1995, which it priced at 100.8 pct at tender
today for an effective yield of 6.12 pct.
    The ministry accepted 50 pct of bids at the issue price.
Higher bids were met in full.
    The loan, which has a May 1 coupon and paydate, will go
towards the government's financing of an estimated 1987
borrowing requirement of about 42 billion guilders.
    The 1987 budget deficit is some 29 billion guilders and
early repayments on state loans are estimated at 13 billion.
    Because of projected early redemptions to the state of
loans by building corporations, analysts predict the state has
to raise 32 billion guilders on the capital markets this year,
of which it has found 4.5 billion guilders on the private
placement market.
   The finance ministry described today's tender as successful
and said the amount raised reflected a change in market
circumstances since the last loan issue together with
international demand for guilder-denominated paper.
    Following today's tender, the fourth state loan for payment
in 1987, a nominal 10.55 billion guilders has been raised by
public issues, bringing the total raised this year to 18.55
billion guilders, or some 44.2 pct of the state's 1987
borrowing requirement.
    The previous state loan, a 6.25 pct issue due 1998/2002
last month, raised a mere 300 mln guilders.
    Analysts said the small amount raised on the last issue was
because it was a return to a split maturity issue, seen as only
attractive to domestic institutions, from bullet loans.
    The finance ministry said then the amount was low but noted
a number of unfavourable market conditions at the time.
    Bullet loans have only been permitted in the Dutch market
since January, 1986, as part of a financial liberalization
plan.
    Bullet loans have attracted considerable foreign demand but
have also given rise to worries their fixed repayment date
might interfere with intricate redemption schemes built up
around previously issued split maturity bonds, dealers said.
 REUTER
