ASIC prospectus proposals could open door to corporate retail bonds
Market users have offered a broadly positive response to a consultation paper from the Australian Securities and Investments Commission (ASIC) proposing a streamlined prospectus process for strong corporates who wish to issue retail bonds. And some believe the eventual result of the consultation could be a retail market offering Australian corporates a valid third option to wholesale and bank funding.BoS adds A$1.4 billion 2011 ahead of busy maturity year
On December 10 Bank of Scotland Australia (BoS Australia) (A+/Aa3) priced an Australian government guaranteed March 2011 domestic bond with a total volume of A$1.4 billion (US$1.28 billion). The deal consists of two tranches: A$250 million of fixed rate notes pricing at 55 basis points over the June 2011 government bond and A$1.15 billion of floating rate paper which priced at 25 basis points over swap.
The bank guarantee one year on: A$130 billion issued
One year after Commonwealth Bank of Australia (CommBank) (AA/Aa1/AA) launched the first Australian government guaranteed bank transaction, the sector has issued a total of around A$130 billion (US$119 billion) in nearly 400 transactions across currencies. And while the use of the guarantee has gradually declined, issuance has surpassed the equivalent of US$10 billion in every three month period.