Macquarie sells $2.5 billion bond issue in US market
14 Jan 2009
Australian group Macquaire tapped global wholesale funding markets by selling $2.5 billion in three-year bonds to US investors.
Being prices well below recent issues, the bonds are backed by an Australian Government guarantee, and is being seen as an indication that global funding markets are reopening.
Macquarie intends to pay interest of around 100 to 105 basis points above the benchmark mid-swap rate, which is a rate that higher-rated retail banks were paying on similar issues around a month ago.
Macquarie priced the three-year 2.6 per cent note at par to yield 2.6 per cent, reports said, with the risk premium or spread being 149.9 basis points over comparable US Treasury yields.
The Australian federal government organised a guarantee for Australian banks in November 2008 to aid their efforts in raising funds from wholesale markets.
The National Australia Bank initiated movement into the global markets, testing the waters while raising $2.5 billion through a bond issue to US investors.
The $2.5 billion offer by Macquaire is the Australian bank's latest foray into the US market after the introduction of the federal government wholesale funding guarantee.
