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St.George increases April 2011 FRN |
St.George Bank (A+/Aa2/A+) (St.George) priced a A$50 million (US$47.9 million) increase to the floating tranche of its April 2011 bond on July 10 – the first time the issuer has increased the line since its 2006 debut and bringing its size to A$950 million, or A$1.35 billion including the fixed rate tranche.
The latest transaction priced at 110 basis points over BBSW; as an illustration of how times have changed in credit markets, if one were needed, the original 2006 price of the line was BBSW plus 17. UBS, which lead managed the latest tap, did not disclose any details of distribution other than to say the deal was a reverse enquiry trade.
The domestic AUD market has been moribund of late, with no public deals pricing since Commonwealth Bank of Australia’s jumbo A$1.75 billion self-led transaction on June 18.
| Issuer |
St George Bank |
| Rating
(S&P/Moody's/Fitch) |
A+/Aa2/A+ |
| Sector |
Financial Institution |
| Country |
Australia |
| Market |
Australian Domestic |
| Pricing date |
10 July 2008 |
| Settlement
date |
15 July 2008 |
| Maturity date |
8 April 2011 |
| Issue Amount |
A$50 million |
| Total issue
amount |
A$950 million |
| Format |
Floating rate notes
increase |
| Coupon |
17 bp/BBSW |
| Spreads |
110 bp/BBSW |
| Issue price |
97.763; Gross: 97.915 |
| Joint Lead
Managers |
UBS Investment Bank |
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Last Updated ( Thursday, 10 July 2008 )
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