October 20, 2021

Australia’s Westpac breaks bond hiatus with $2.8 bln deal

A pedestrian looks at his phone as he walks past a logo for Australia’s Westpac Banking Corp located outside a branch in central Sydney, Australia, November 5, 2018. REUTERS/David Gray

Westpac Banking Group (WBC.AX) on Tuesday reopened Australia’s big banks bond-market taps for the first time in more than a year, with a $2.75 billion deal that also marked their first use of a non-USD Libor benchmark rate to price the debt.

Investors gobbled up Westpac’s first issue of senior bonds since January last year, allowing the country’s second-largest lender to pay only 60 basis points over Treasuries for $1 billion in 10-year debt, a 25% discount to the 80 points it paid last year.

A $300 million floating-rate bond tranche maturing in five years was priced at a 52 basis point spread over the Secured Overnight Financing Rate (SOFR) – the first time any of the “Big Four” Australian lenders had…

Read full article here: www.reuters.com