BHP aims at home-market debt investors
BHP Billiton yesterday flagged plans to sell more term debt in the domestic bond market, after easily placing A$1 billion in five-year debt. It was BHP's first sale of debt in the domestic market since late 2001.BHP sold the bonds at 90 basis points over swap, five bps narrower than the indicative price quoted when the deal was launched early yesterday.The Australian Financial Review reported that BHP told a conference call of debt investors yesterday that it intended to "build a curve" in Australia; that is, to issue term debt in a range of maturities in Australian dollars.Australian-headquartered BHP has little need for Australian dollar funding and described its home country's currency as "non-functional" in its annual report. It sells most of its commodities in US dollars and also reports its financial statements in US dollars.