TCV tests 30-year demand
Treasury Corporation of Victoria has become only the second Australian entity to place a 30-year bond with investors in the debt capital market. TCV's new A$100 million bond, sold yesterday, is repayable in November 2047. Commonwealth Bank acted as sole lead manager on the bond sale, and said the TCV issue was priced to yield 4.005 per cent, equal to a re-offer level of 51.25 basis points over the Commonwealth government's March 2047 bond. The Commonwealth government 30-year bond is the only other security of that tenor in the Australian market from a domestic name. TCV also has longer dated bonds with 15 and 23 year tenors.Queensland Treasury Corporation is the only other state government borrowing authority with a yield curve beyond the former 10-year norm. QTC has debt with current tenors of 13 and 16 years.