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ANZ brings A$1.17 billion in three tranches |
ANZ Banking Group (AA/Aa1) (ANZ) brought a total of A$1.17 billion (US$1.02 billion) of increases to the domestic market in a self-led deal on August 11, adding to the fixed tranche of its 2010 bond and both the fixed and floating portions of its 2011.
A total of A$120 million was added to the two-year bond at a price of 63 basis points over mid-rate swap, bringing the total outstanding in the tranche to A$430 million and the total in the 2010 line overall to A$795 million. The fixed and floating portions of the 2011 bond had A$350 million and A$700 million added respectively, both at a price of 90 basis points over three-month BBSW. ANZ now has a total of A$2.4 billion outstanding in its 2011 line with A$1.45 billion of FRNs and A$950 million of fixed rate paper.
The contrast with pricing when ANZ first brought the 2011 bond emphasises once again how the credit market has changed: when introduced in November 2006 the line priced at 15 basis points over swap, and was tapped in March last year at just 10 basis points over. The 2010 was brought to market in September last year at 32 basis points over swap.
Nicholas Fyffe, head of syndicate and high yield investments at ANZ in Sydney, says the trend for bringing multi-tranche, multi-maturity transactions is indicative of an investor-led market in which demand has become more fragmented. “Two or three years ago the market was more like Henry Ford’s ‘any colour as long as it’s black’ – you could have any maturity provided it was the one being offered. We think the investor market is now looking at things on a more individual basis rather than moving as one, though of course it is still great when you can print A$1 billion-plus deals.”
In this case, Fyffe says there was specific reverse inquiry demand for ANZ’s 2010s late last week which might initially have led to a private placement deal. However, more generic demand for the 2011s has also built in recent days, allowing the issuer to package the two- and three-year line increases together as a single transaction.
According to ANZ a total of 23 accounts participated in the transaction with over 90 per cent of paper placed domestically. Just over half the total went to real money investors with the remainder placed with balance sheet investors.
| Issuer |
ANZ
Banking Group |
| Rating
(S&P/Moody's) |
AA/Aa1 |
| Sector |
Financial Institution |
| Country |
Australia |
| Pricing date |
11 August 2008 |
| Settlement
date |
15 August 2008 |
| Lead Manager |
ANZ |
| |
|
|
| 2010 maturity |
|
|
| Maturity date |
18 September 2010 |
| Issue Amount |
A$120 million |
| Outstanding amount |
A$795 million in two tranches |
|
| Format |
Fixed rate medium term
notes |
| Coupon |
7 per cent |
| Yield |
7.535 per cent |
| Spread to
swap |
63bp/ A$ mid |
| Issue price |
98.972 capital + 2.583
accrued |
| |
|
|
| 2011 maturity |
|
|
| Maturity date |
8 November 2011 |
| Issue Amount |
A$1.05 billion in two
tranches |
| Outstanding amount |
A$2.4 billion in two tranches |
|
| Format |
Fixed and floating rate
medium term notes |
| Fixed rate tranche |
|
|
| Issue Amount |
A$350 million |
| Outstanding amount |
A$950 million |
|
| Coupon |
6.5 per cent |
| Yield |
7.735 per cent |
| Spread to
swap |
90bp/ A$ mid |
| Issue price |
96.512 capital + 1.749
accrued |
| Floating rate tranche |
|
|
| Issue Amount |
A$700 million |
| Outstanding amount |
A$1.45 billion |
|
| Coupon |
15bp/BBSW |
| Spread to
swap |
90bp/BBSW |
| Issue price |
97.869 capital + 0.143
accrued |
|
|
Last Updated ( Wednesday, 13 August 2008 )
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