BOQ raises $600 million through five-year funding transaction

Bank of Queensland (BOQ) has priced a new five-year funding transaction, raising $600 million through the issue of $425 million five-year floating rate notes and $125 million five-year fixed rate notes under its Australian Debt Instrument Program.

The floating tranche is priced at a margin of 107 basis points over the three-month Bank Bill Swap Rate (BBSR), while the fixed tranche is priced with a semi-annual coupon of 4.00 per cent (at the equivalent of 107 basis points over the semi/quarterly asset swap).

“This marks BOQ’s first five-year benchmark senior transaction since the global financial crisis,” BOQ chief financial officer Anthony Rose said.

“We’re pleased we’ve been able to continue to build out our domestic yield curve with new fixed and floating five-year tranches, taking advantage of positive credit rating momentum and strong full year results.

“Over 70 accounts participated across both tranches following a successful deal road show in Melbourne, Sydney and Brisbane,” he said.

The geographic split was 88 per cent domestic investors and 12 per cent through overseas investors.

promoted stories

Latest News

Recommended for You