Swiss Re announced that it has successfully settled its first Australian dollar bond today with a perpetual subordinated step-up notes transaction, totaling A$750 million (US$620 million).
Swiss Re noted that the “two-tranche transaction represents one of the first issues of hybrid debt denominated in Australian dollars by a non-Australian issuer. The offering was structured using a repackaging vehicle (ELM B.V.) that issued notes secured over perpetual subordinated step-up loan notes issued by Swiss Reinsurance Company” (See IJ web site April 18, 24).
The issue “attracted strong investor demand, predominantly from local investors,” said the bulletin. The A$300 million (US$248 million) fixed-rate tranche was priced at 7.635 percent while the A$450 million (US$372 million) floating tranche pays a coupon of 6m BBSW + 117 bps, in each case for the first 10 years.
Was this article valuable?
Here are more articles you may enjoy.
Oil Tankers Go Dark to Sneak More Barrels of Oil Through Hormuz 
Hedge Funds Are Expanding Desks Designed to Profit From Natural-Catastrophe Risk 
Miami Moves to Seize Part of Posh Island After Fuel Fight 
United Co-Pilot Warned Plane Was Slow, Low Before Newark Mishap 
