AOFM raises A$15B from sale via syndication of new 2051 bond

By Sophia Rodrigues

Published On 28 Jul 2020 , 11:58 AM

The Australian government has raised $15 billion from the sale of the new 1.75% June 2051 bond via syndication, after the orderbook closed at A$36.8 billion. The price of 98bps over the implied bid yield for the primary ten-year Treasury Bond futures contract works out to a yield of 1.92%.

The deal size is at the top end of the earlier range of A$12 billion to A$15 billion. The issue will settle on August 5.

ANZ, Commonwealth Bank of Australia, Deutsche Bank, J.P. Morgan Securities Australia Limited and UBS AG, Australia Branch are 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.

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