aussie-credit-unions-bond-together-via-abn-deal

Aussie credit unions bond together via ABN deal

In a market first, a group of 21 credit unions issues A$100 million in Tier 1 and Tier 2 capital securities via ABN AMRO.
Proving that small financial institutions can tap the capital markets, a group of Australian credit unions has banded together to issue A$50 million in Tier 1 preference shares and A$50 million in 10-year subordinated debt instruments.

Lead manager and sole bookrunner ABN AMRO took two years of regulatory wrangling to bring the transaction to market and is calling it a first for Australia.

The 21 credit unions created two special purpose vehicles to act as issuing entities and then sold the securities to institutional investors following a two-day roadshow.

The Tier 2 component contained three tranches A$33.5 million of senior AAA-rated notes, A$10 million of mezzanine BBB-rated notes and A$6.5 million of junior...
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