Suncorp no match in Euromarket

Philip Bayley
Australian bank names are a lesser credit, in the eyes of European debt investors, than one retail champion.

Suncorp raised €250 million for three years last week, at a spread of 60 basis points over Libor.

Pricing ranges in this market are wide, or have been. NAB, for instance, raised £210 million for one year at a spread of five bps over Libor a month ago.

More recently Macquarie Bank raised €500 million for five years at spread of 81.3 basis points over bonds.

But Wesfarmers, a conglomerate, raised €600 million for seven years last week, priced at 55 bps over mid-swaps.

The difference in the pricing of between the Suncorp and Wesfarmers bonds suggests that the opportunity to gain exposure to a diversified Australian conglomerate was highly sought after.