Three and four year terms appeal to financial issuers
Commonwealth Bank on Thursday priced $2.5 billion of fixed and floating rate transferable certificate of deposits maturing in July 2015. The bank promoted the financing as the largest ever non-guaranteed bond deal from an Australian bank in the domestic market.CBA priced the fixed-rate tranche of $1 billion at a yield of 6.65 per cent. That represented a spread of 147 basis points over Commonwealth government securities. The floating-rate tranche of $1.5 billion was issued at a spread of 105 basis points over the 90-day bill yield.Rabobank also sold $800 million of debt with a slightly shorter maturity date of April 2015. Rabo sold a fixed-rate tranche of $475 million priced at 105 basis points over swap while the floating-rate issue of $425 million was priced at 105 basis points over three-month swap.BNP Paribas Australia also raised $800 million through the sale of January 2014 notes. The fixed component of $250 million pays a coupon of 6.5 per cent while the floating-rate tranche of $550 million was sold at a spread of 115 basis points over the three-month bill rate.In other issues, CBA priced a three-year £200 million floating rate note issue at spread of 70 basis points over three-month rate .National Australia Bank priced a US$700 million January 2012 floating rate note at nine basis points over one-month Libor.German development bank KFW issued a new 6 per cent January 2016 Kangaroo bond at 87 basis points over April 2015 CGS.