BOQ sells sub debt
Bank of Queensland is the latest bank to raise capital, in BOQ's case in the form of subordinated debt.BOQ sold $140 million in fixed rate notes and $30 million in floating rate notes yesterday in a deal managed by Societe Generale. Both are for five-year terms.The fixed tranche was priced to yield 414 basis points over the benchmark Commonwealth government bond or 310 basis points over the five-year swap rate.The floating tranche was priced at 310 basis points over swap.BOQ has credit ratings on the subordinated debt of A3 from Moody's and BBB from Standard & Poor's and Fitch.Meanwhile Bloomberg reported that another bank sold mortgage-backed bonds to the Reserve Bank of Australia, this time $120 million in securities.This brings mortgage debt sold to the RBA since this became an option seven months ago to $3 billion.