144a market may soon live up to its name
Following ANZ's venture into the US s144A market the week before last, Westpac (rated AA-) last week raised US$3.75 billion in the same market. The Westpac volume pipped ANZ's effort by US$0.5 billion.And, like ANZ, Westpac paid up for the privilege of doing so. The five year bonds priced at the equivalent of 126 basis points over bank bills and the three year bonds at the equivalent of 95 bps over, according to NAB.Westpac issued US$1.75 billion of five year bonds at a spread of 97 bps over US Treasury bonds and issued US$1.0 billion each of three year fixed and floating rate notes. The three year fixed notes were priced at 77 bps over Treasuries and the floaters were marked at 74 bps over Libor.In the same market, Macquarie Group (BBB) sold US$50million of three year bonds and Virgin Australia Holdings Limited (B-) added US$100 million to the US$300 million of November 2019 it issued a year earlier. The Virgin bonds pay an 8.5 per cent coupon.In the Euromarket, Woolworths (BBB+) sold ¥20 billion of five year bonds, at a yield of 0.77 per cent. The amount raised equates to approximately A$225 million.Macquarie Bank (A) sold HKD100 million of three year bonds at a yield of 2.0% per annum. And Commonwealth Bank (AA-) raised ¥9.8 billion (A$112 million) for 1.5 years, at the same yield.