The local branch of Royal Bank of Scotland is issuing an Australian dollar denominated bond backed by a UK government guarantee.
The Australian reports today that the RBS move is designed to give overseas institutional borrowers access to the liquidity in Australian superannuation funds.
The bond, which the paper says will be priced today, is for a three-year term and will pay around 90 basis points over the swap rate.
The paper quotes one fixed interest fund manager saying the issue will be welcome as a way of giving them some diversification from their steady diet of local bank government guaranteed issues.