National Australia Bank, Caterpillar Financial Offer A$ Bonds
08/22/2012| 07:54pm US/Eastern
SYDNEY--Activity in Australia's moribund corporate bond market picked up on Thursday with new offers from two borrowers, bringing to an end a quiet period for domestic investors.
Issuance in recent months has been largely dominated by supranational or agency borrowers as cashed up banks sit on the sidelines or follow their corporate peers to foreign currency funding markets.
In a deal expected to be priced later Thursday, National Australia Bank Ltd. (NAB), one of the country's big four lenders, is offering senior unsecured notes maturing in 2016. The price guidance is around 110 basis points to 115 basis points over swap.
Separately, Caterpillar Financial Australia Ltd. is offering two year fixed rate notes with indicative pricing of 100 basis points to 105 basis points over swap. The company wants to raise at least A$100 million. Australia and New Zealand Banking Group Ltd. (ANZ) is the sole lead manager on the Caterpillar offering.
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