Australia Raises Record A$21B Via 2031 Bond Syndication

By Sophia Rodrigues

The Australian government has created a new record for a single bond issue after attracting record bids, thus beating its previous record set only three months ago.

The Australian Office of Financial Management issued A$21 billion of the new 21 November 2031 bond after receiving record bids of over A$66 billion at the final clearing price.

The bond was priced at a yield to maturity of 1.055%. That is likely a spread of 9bps over the implied bid for the 10-year futures. At the time of launch, the price range was 8bps to 11bps.

Citigroup, CBA, UBS and Westpac were Joint-Lead Managers for the issue.

The issue size of A$21 billion has beaten previous record of A$19 billion reached on May 13 when the AOFM issued 1% December 2030 bond via syndication at a yield of 1.025%.