Westpac has raised $2.8 billion this week through a three and five-year Australian dollar bond offer.
The bank raised $1.05 billion in its three-year offer paying a margin of 95 basis points over the BBSW for the floating rate note and a yield of 4.99 percent for the fixed rate component according to the Australian Financial Review.
The biggest tranche of Westpac’s raising was a $1.35 billion five-year floating rate note, which paid 123 basis points over the BBSW while the $400 million fixed-rate tranche paid 5.37 percent.
Westpac had indicated that the notes were expected to be rated AA- by S&P Global Ratings and Aa3 by Moody’s.
ANZ last week raised $4.75 with the sale of bonds at 92 and 120 basis points over the BBSW.
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Investor interest for both bank raisings favoured the floating rates.
Westpac on Monday announced a $5.276 billion cash profit to year-end September 30. ANZ announced a cash profit of $6.52 billion with both banks warning of cost pressures. They both however lifted their final dividends.
