Hot cross bonds
The appetite for debt securities remains strong after two diversified financial groups put away sizeable issues in the lead up to Easter.
Ahead of market concerns that the proposed National Broadband Network bond sale could diminish appetite for corporate bond issues, Suncorp Metway and AMP have both just completed successful issues of corporate debt.
Suncorp Metway has pout away a $US2.5 billion debt raising, comprising a two year floating component of $US1 billion and a three year floating component of $US1.5 billion, and AMP's notes offer has successfully raised over $296 million.
Suncorp's two year component was priced at Libor plus 125 basis points, while the three year component was priced at 150 basis points above Libor.
The Suncorp transaction, managed by Citigroup and JPMorgan, caps off a total of $7 billion raised by the bancassurer since the beginning of 2009. Earlier this year Suncorp raised $355 million in a domestic private placement, $1.6 billion in Sterling-denominated bonds, $250 million in a Swiss Franc-denominated one-year private placement, $510 million in a five-year Yen private placement and $1 billion in institutional and retail capital raising.
UBS earned a 1.75 per cent underwriting fee and a 0.5 per cent lead management fee on $800 million for the institutional component of the raising (both via private placement and institutional rights issue) and on $100 million for the retail component. A UBS team led by Shane Doyle and Matthew Grounds advised Suncorp, while Simon Cox and Robert Vanderzeil managed the ECM side of things. An ABN Amro Morgans team led by Sophie Mitchell also managed the retail tranche of the raising.
Suncorp's debt raising comes on the heels of a $500 million bond issue made by the Commonwealth Bank earlier this week (Drop debt gorgeous, April 6). While Suncorp's issue was government guaranteed, CBA's wasn't. CBA managed the issue and last month raised $465 million in sovereign-backed bonds on the European and Australian floating rate notes market in issues managed by Goldman Sachs and HSBC respectively.
In January CBA raised $US2.5 billion in sovereign backed bonds, NAB offered another $US500 million on top of a $US2 billion offer and ANZ raised $3.3 billion in a series of three- and five-year notes.
The AMP notes meanwhile begin trading tomorrow. AMP will issue $202.7 million worth of the things on the ASX (the code is AQNHA) and $NZ115.5 million ($94 million) on the NZDX debt market (as AQN010). AQNHAs are paying a yield of 7.8817 per cent for the interest period ending August 15, while AQN010 is paying 9.8025 per cent over the same period.
A team led by capital markets director Tricia Ho from UBS joined ABN Amro as joint structuring advisers, joint lead managers and joint bookrunners to the issue. ANZ, Commsec and Macquarie also acted as joint lead managers and joint bookrunners, while in New Zealand ABN Amro Craigs and Forsyth Barr acted as lead managers with BNZ Capital and Ord Minnett acting as co-managers.
Along with AMP's notes, Tabcorp is the other major offerer of listed debt. Late last month Tabcorp announced a $200 million corporate bond issue, the first in many years (Tabcorp to pay over the odds, March 24).
Some in the market are now wondering whether there will still be enough appetite left for the Commonwealth government's proposed $9 billion bond issue to fund the NBN. The Australian Office of Financial Management chief Neil Hyden says that markets should be there however. "We are certainly not seeing any signs of exhaustion in the market at this stage," he said.
Suncorp Metway has pout away a $US2.5 billion debt raising, comprising a two year floating component of $US1 billion and a three year floating component of $US1.5 billion, and AMP's notes offer has successfully raised over $296 million.
Suncorp's two year component was priced at Libor plus 125 basis points, while the three year component was priced at 150 basis points above Libor.
The Suncorp transaction, managed by Citigroup and JPMorgan, caps off a total of $7 billion raised by the bancassurer since the beginning of 2009. Earlier this year Suncorp raised $355 million in a domestic private placement, $1.6 billion in Sterling-denominated bonds, $250 million in a Swiss Franc-denominated one-year private placement, $510 million in a five-year Yen private placement and $1 billion in institutional and retail capital raising.
UBS earned a 1.75 per cent underwriting fee and a 0.5 per cent lead management fee on $800 million for the institutional component of the raising (both via private placement and institutional rights issue) and on $100 million for the retail component. A UBS team led by Shane Doyle and Matthew Grounds advised Suncorp, while Simon Cox and Robert Vanderzeil managed the ECM side of things. An ABN Amro Morgans team led by Sophie Mitchell also managed the retail tranche of the raising.
Suncorp's debt raising comes on the heels of a $500 million bond issue made by the Commonwealth Bank earlier this week (Drop debt gorgeous, April 6). While Suncorp's issue was government guaranteed, CBA's wasn't. CBA managed the issue and last month raised $465 million in sovereign-backed bonds on the European and Australian floating rate notes market in issues managed by Goldman Sachs and HSBC respectively.
In January CBA raised $US2.5 billion in sovereign backed bonds, NAB offered another $US500 million on top of a $US2 billion offer and ANZ raised $3.3 billion in a series of three- and five-year notes.
The AMP notes meanwhile begin trading tomorrow. AMP will issue $202.7 million worth of the things on the ASX (the code is AQNHA) and $NZ115.5 million ($94 million) on the NZDX debt market (as AQN010). AQNHAs are paying a yield of 7.8817 per cent for the interest period ending August 15, while AQN010 is paying 9.8025 per cent over the same period.
A team led by capital markets director Tricia Ho from UBS joined ABN Amro as joint structuring advisers, joint lead managers and joint bookrunners to the issue. ANZ, Commsec and Macquarie also acted as joint lead managers and joint bookrunners, while in New Zealand ABN Amro Craigs and Forsyth Barr acted as lead managers with BNZ Capital and Ord Minnett acting as co-managers.
Along with AMP's notes, Tabcorp is the other major offerer of listed debt. Late last month Tabcorp announced a $200 million corporate bond issue, the first in many years (Tabcorp to pay over the odds, March 24).
Some in the market are now wondering whether there will still be enough appetite left for the Commonwealth government's proposed $9 billion bond issue to fund the NBN. The Australian Office of Financial Management chief Neil Hyden says that markets should be there however. "We are certainly not seeing any signs of exhaustion in the market at this stage," he said.
Share this article and show your support
Call 1300 880 160
Start a chat
Schedule a call
