AMP Group launched a A$600 million floating rate subordinated exchangeable note issue yesterday with a term of 10 years that will qualify as lower Tier 2 capital. The proceeds will go towards funding the merger with AXA Asia. The notes will be issued at 250 basis points over the three-month bank bill swap rate. Any unsold portion will be bought by AXA or its subsidiaries. In the other big capital market deal yesterday, ETSA Utilities Finance saw strong demand for its 5.5 year senior unsecured medium-term notes. This resulted in over-subscription of over 2.5 times and pricing five basis points within guidance.   The utility issue raised A$250 million at a spread of 135 basis points over swap. The issue is expected to be rated A-. Meanwhile, Westpac is reported to have completed the buyback of up to A$3.6 billion of March 2012 notes, after buying around A$1.5 billion of the securities. The buyback was offered at a spread of 10 basis points below the bank bill rate.