Aussie market finds new depth

Fri Oct 25, 2013 5:22am EDT
 
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* RBC Sydney prints record A$1.5bn bond

* Deal comes right after record corporate bond by Aurizon

* Market becoming viable funding avenue

By John Weavers

SYDNEY, Oct 25 (IFR) - Royal Bank of Canada, Sydney branch, turned heads on October 22 with a record-breaking local debut that showed the Australian dollar market might be deeper than many had thought.

The A$1.5bn (US$1.448bn) three-year floating-rate note is the biggest senior unsecured deal to date from any bank other than the country's four major lenders.

The previous chart topper was Bank of Queensland's A$1.25bn four-year floater at the end of 2009, which enjoyed the benefit of a Commonwealth Government guarantee.

RBC's ground-breaking deal came only days after Aurizon Network rewrote the local corporate record books with its inaugural offering on October 18.

Aurizon's A$525m 5.75% seven-year bond is the largest Triple B rated local corporate issue, as well as the country's biggest seven-year corporate paper.   Continued...