Popular subordinated debt is back in the headlines with two new issues after AusNet’s successful raise of $950m last month. Electricity network operator, TransGrid has launched two new subordinated bonds:
- A 30-year, floating rate non-call five (30NC5) transaction that had price guidance of 3-month BBSW + 220-225 basis points (bps). The company raised $1 billion and there was significant spread tightening with the margin settling at 205bps.
- Also a 30NC8 fixed to floating rate bond with 245-250bps guidance. The company accepted $400m of bids at a coupon of 6.277% or a 225bps margin over semi-quarterly swap.
HSBC has just announced a new subordinated 10NC5 offering. The coupon will be fixed to floating, or floating, or a combination of the two. Price guidance is 205bps over swap.
Just this morning, Nestle has also launched a senior fixed five and, or, 10-year raise. Price guidance is 85bps and 115bps respectively.
