IFC and Wesfarmers on the road

There was news on Thursday of two "non-deal" roadshows in the domestic market. The term non-deal roadshow is usually considered an oxymoron but in at least one of these cases it probably isn't.

International Finance Corporation met with investors in Melbourne on Thursday and investors in Sydney on Friday. IFC has issued only two bonds in the domestic market: a A$1.0 billion February 2013 bond and a A$1.8 billion June 2014 bond. The latter has been topped-up twice since its issue in June last year.

It is likely that this is just a rare trip to Australia by IFC officials.

Following its interim results announcement on Thursday, Wesfarmers said it would undertake a non-deal roadshow as part of its commitment to keep bond investors informed of developments in the company. Wesfarmers will meet with investors in Sydney on Wednesday and investors in Melbourne the following Monday.

The timing of the meetings suggests no urgency but the fact that the four major banks are hosting the meetings suggests that a deal could be in the offing.

Wesfarmers produced good interim results this week, the highlight of which was the turnaround in the performance of the Coles Group, for which it paid A$19 billion in 2007.

On the back of this, it would be a good time to come to the market.

Moreover, it would follow on from Wesfarmers' A$500 million, five-year bond issue in September last year which, in our opinion, was the deal of 2009.