Offshore debt markets suit banks
ANZ and CBA were active in international bond markets last week.ANZ (rated AA-) returned to the Uridashi market just a month after its last visit to sell Australian, New Zealand and United States dollar denominated bonds. ANZ has tapped the Uridashi market every month since July.This time the bank sold A$40 million, NZ$20 million and US$52 million of five-year bonds, paying coupons of 4.29 per cent, 4.98 per cent and 1.84 per cent per annum, respectively.The bank also sold £100 million of one-year euro floating-rate notes in the Euromarket, at a spread of just four basis points over Libor.CBA (rated AA-) also went to the Euromarket, to raise €850 million for three years, at a spread of 33 bps over Euribor. This should swap back at around 80 bps over bank bills.And the Canadian Imperial Bank of Commerce returned after an absence of more than two years with another covered bond issue.The A$500 million of 3.25 year covered floating-rate notes issued at a spread of 52 bps over the 90-day bank bill rate, will largely replace the A$750 million of covered bonds that will mature in December. Those bonds were issued in October 2010 at a spread of 48 bps over swap.Nederlandse Waterschapsbank (rated AAA) added A$50 million to the A$75 million of April 2024 bonds that it quietly issued the week before.And Greater Building Society (rated BBB) quietly raised A$20 million for one year, paying 85 bps over bank bills.