£10 Chinese Government Skoda Loan II 1925 bearing 8% Interest Bond - China Uncanceled Bond
Inv# FB6083C Bond
Chinese Government 10 Pound Sterling Bond bearing 8% interest. (High rate of interest). 17 interest coupons attached. Measures 20 3/4" x 15" with coupons.
The Chinese Government Skoda Loan II of 1925 was a significant financial restructuring agreement aimed at resolving the unpaid debts of the Beiyang government. In 1911, the Imperial Government of China had issued the original Skoda Loan I to acquire naval and military equipment from the Skoda Works factory in Pilsen and the Italian Monfalcone Shipbuilding Yards. However, years of political turmoil led to the signing of a crucial supplementary agreement on September 30, 1925, between the Chinese Ministry of Finance and the Italian Bank for China (formerly the Sino-Italian Bank). This bank represented the interests of the European bondholders.
This restructuring consolidated various legacy debts into a new capital sum of £6,866,046, which carried an annual interest rate of 8%. Under the conversion terms, investors were entitled to receive £150 of the new Skoda Loan II bonds for every £100 owed under the original 1911 contract. The un-canceled physical bonds were printed in Peking by the Bureau of Engraving and Printing and were redeemable for coupons payable in London through Credito Italiano and J. Hambro & Sons.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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