Offshore markets work for term debt
Offshore debt markets suited financial issuers last week. The largest deal on offer came from Macquarie Bank (rated A), which raised €500 million for five years at a spread of 112 basis points over mid-swaps. This would equate to around 180 bps over bank bills on a fully hedged basis.The local operations of Rabobank (AA-) and ING Bank (A+) both raised A$100 million for six years in the Euromarket. ING paid 136 bps over mid-swaps.GE Capital Australia Funding (AA+) raised A$150 million for six years and will pay a five per cent fixed coupon. And, in an identical transaction, Commonwealth Bank raised A$125 million.In the Uridashi market, ANZ (AA-) raised 866 million Mexican pesos (A$71.1 million) for five years and A$12.8 million for four years. The bonds will yield 4.57 per cent and 3.8 per cent per annum, respectively.