ANZ, Wesfarmers and Rabo sell debt offshore
ANZ did its bit to keep the basis swap wide by issuing €1.25 billion of seven-year bonds last week. The bonds were priced at 87 basis points over mid-swaps, which appears reasonable against the Comonwealth Bank's ten-year euro issue two weeks earlier, priced at 98 bps over. Wesfarmers (rated BBB+) was also active in the Euromarket, raising €500 million for five years, priced at 135 bps over mid-swaps. It was only two weeks ago that we reported Wesfarmers would be meeting with domestic investors on a 'non-deal' roadshow the following week. We expected that there would be a deal; perhaps it was this one.According to our records, Wesfarmers' only other offshore issue is a US$650 million, five-year bond issued in the US s144A market in April 2008. It also has just a A$500 million September 2014 bond in the domestic market. If the 'non-deal' roadshow was only for this euro issue, domestic investors will likely be disappointed.Rabobank Australia added another A$50 million to its January 2013 line to bring outstandings to A$400 million. This is its third addition to the line.Lastly, Reuters reported Telstra (A2 and on review for possible downgrade) will be meeting with debt investors in Europe this week.