ANZ Bank has raised $1.75 billion from its 10-year Tier 2 debt raising this week with a preference being shown for fixed-rate allocations.
Of the amount raised, $300 million was in the floating rate tranche with $1.45 billion in the fixed-rate tranche according to the Australian Financial Review.
Pricing was settled at 270 basis points above the Bank Bill Swap Rate, which was narrower than the 280bps margin guidance provided.
ANZ has held an investor roadshow in the U.S. and Australia and was faced with demand of more than $2.3bn for the raise.
The notes were expected to be rated Baa1 by Moody’s, BBB+ by S&P and A- by Fitch.
The ANZ recently announced a $4.9 billion deal to buy Brisbane-based Suncorp Bank, with the bank launching a $3.5 billion raising through a share offer to existing shareholders, and was underwritten by UBS and Macquarie Capital.
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Last week the National Australia Bank, also in pursuit of regulatory capital, raised $1.25 billion of subordinated debt, with $250 million in floating rate notes and $1 billion in fixed rate. The margin was 2.8 percent above BBSW. The notes are due in August 2032.
The yield was a high 6.322 percent.
