AOFM issues A$14B of Nov 2032 govt bond via syndication

By Sophia Rodrigues

Published On 13 Apr 2021 , 10:22 AM

The AOFM has issued A$14 billion of the 1.75% 21 November 2032 bond issue at a price of +12.5bps, and indicative yield of 1.895%. The orderbook at clearing price was A$47 billion.

The bond was launched on Monday via syndication with a price guide of 10.5bps to 13.5bps over the implied bid yield for the 10-year futures contract, and was later tightened to 11bps-13bps.

Settlement is next Tuesday, 20 April 2021. Commonwealth Bank of Australia, Deutsche Bank, UBS AG Australia Branch; and Westpac Banking Corporation are joint lead managers for the issue.

The AOFM’s November 2031 bond syndication in August last year was priced at 9bps over the 10-year futures and had attracted orderbook of A$66.1 billion at the clearing price. The issue size was finalized at A$21 billion.

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