Over the last week, both NAB and ANZ launched new bond issues.
NAB issued a bumper A$5.25 billion. It came to the market last Thursday with four tranches, all ranked senior unsecured, a fixed and a floating maturing in three years and a fixed and floating issue maturing in five years. All four tranches are rated as S&P Global AA- or equivalent. Details are as follows:
Three year, 2026 maturities
- $2 billion floating rate at 3 month BBSW plus 78 bp
- $350 million fixed at a coupon 4.2% issue yield 4.2032%
Five year, 2028 maturities
- $2.35 billion floating rate at 3 month BBSW plus 100 bp
- $350 million fixed at a coupon 4.4% issue yield 4.4336%, margin 100bp/s-q swap
At the same time, NAB bought back the following:
- A$89 million FRN 26 September 2024 maturity repurchase price: 100.512%
- A$35.5 million FRN 19 June 2024 maturity repurchase price: 100.487%
Also read: The Benefits of Global High Yield
ANZ Bank
ANZ issued a Tier 2 subordinated debt issue on Monday. The new issue raised A$1.15 billion and has an expected issue rating of BBB+ or equivalent.
The transaction has a 10 year, non call five (10NC5) structure and there were two tranches:
- An A$275m fixed to floating which had a coupon and issue yield of 5.845%
- An A$875m floating rate tranche with a 235 basis point margin over 3 month BBSW.
