Australia’s bond market proved lively last week, with three issues.
The Bank of Queensland launched a floating rate bond with a 10.25 year final maturity that can be called after 5.25 years.
The bond is rated BBB and was initially priced at 2.05 per cent over the three-month bank bill swap rate.
It attracted strong demand of $2bn, despite just $250m being raised, and the price was narrowed to 1.83 per cent above the BBSW as a result.
Another involved the German electricity company EnBW raising funds through a five-year and 10-year senior bond deal.
The five-year bond had a yield of 5.382 per cent and the 10-year 6.048 per cent.
The total order book was $1.965bn, and $350m was issued for the five-year bond and $650m for the 10-year.
Both bonds were rated A minus by S&P.
Other deals included Hollard insurance raising $115m through a floating bond deal, 2.25 per cent above the three-month bank bill swap rate. This was lower than its initial guidance of 2.45 per cent above BBSW due to high demand, with a $750m order book.
And finally, Melbourne Airport on Friday raised $500m through an eight-year senior secured bond deal rated BBB+.
The initial guidance margin was 1.45 above the BBSW.
The order book was $1.6bn, leading to the margin being reduced to 1.38 per cent above BBSW, resulting in a fixed rate of 5.598 per cent.
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