Sovereign Debt

Australia extends run of large issuances with record A$25 bln bond sale

There is potential for an even bigger issue, although the government is being responsible in trying to right-size the deal, says one banker.

The Australian government this week sold a record A$25 billion $17.7 billion bond, continuing this year's stretch of large issuances, in a transaction that appeared to raise few eyebrows despite its large size.

The Australian Office of Financial Management, which manages government debt, said the syndicated issue with a 0.5% coupon and maturity in September 2026 received total bids worth as much as A$66.1 billion at the final clearing price, signaling it might have raised more funds, had it desired so.

Yield-to-maturity was set at 0.47%. Settlement will occur on September 29.

Australia and New Zealand Banking Group, BofA Securities, Deutsche Bank and...

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