Offshore A$ bond issuance breaking records too

Offshore corporate bond issuance by Australian entities has also been record breaking. The total for the first half 2009 came in at the equivalent of A$82.1 billion, well ahead of the A$63.2 billion of issuance seen in the first half of 2008. Moreover, with 2008 having seen record issuance of the equivalent A$94.5 billion for the full year, 2009 again appears to be well on track to set a new record.

Once again the Australian banks have accounted for 78 per cent of first half issuance and 72 per cent has been government guaranteed.  Australia's resource companies, BHP Billiton, Rio Tinto and Woodside Petroleum, were the other big issuers, raising the equivalent of A$15.6 billion.

National Australia Bank got July started, raising US$2.75 billion in the US s144A market, for five years at 50 basis points over swap/libor, with a government guarantee. CBA was the other big issuer last week, raising a total of US$650 million across various issues but mostly in the US s144A market, and SG$100 million for three years via a euro medium-term note issue.

Offshore issuance for July now stands at the equivalent of A$3.5 billion.