AOFM's 2051 Bond Syndicate Orderbook Reaches A$17.7B, Guidance Tightens

• Published on
• 27 Jul 2020, 02:36 PM

By Sophia Rodrigues

The Australian government’s 1.75% June 2051 bond issue has attracted orderbook of over A$17.7 billion within few hours of the book opening, and the price guidance has been tightened.

The new 2051 bond syndicate was launched earlier Monday.

The initial price guidance for the bond was a spread of 98bps to 105bps over the implied bid yield for the primary ten-year Treasury Bond futures contract. This has been revised to 98bps to 102bps and works out to a yield of 1.89% to 1.93%.

The book is expected to close early Tuesday or at short notice. The issue is expected to be priced on Tuesday and will settle on August 5.

ANZ, Commonwealth Bank of Australia, Deutsche Bank, J.P. Morgan Securities Australia Limited and UBS AG, Australia Branch are as Joint-Lead Managers for the issue.

The Australian Office of Financial Management said there will be no further issuance of this Treasury Bond prior to November 2020 and it will mindful of the performance of the bond when considering the timing of future issuance.