HBS settles subordinated, retail bond 02 November 2009 5:48PM Philip Bayley It was a subdued end to the month of October, with very little issuance activity seen in the domestic market or offshore. In the domestic market Heritage Building Society completed retail, subordinated bond issue. HBS sold A$50 million after seeking a minimum of A$30 million.The HBS bonds will pay a fixed coupon of 10 per cent for the first five years and if not called at that time the coupon converts to floating and steps up to 6.65 per cent over the bank bill rate. HSBC Bank Australia settled a A$250 million, two-year, floating rate note issue during the week. The notes had been priced the week before at 60 basis points over bank bills. This issuance brings the value of bonds sold in the domestic market for October 2009 to A$6.25 billion, making it the second lowest monthly total for the year. April saw the lowest issuance at just over A$4.0 billion. The year-to-date total now stands at A$83.5 billion.