Orica experiments with novel US private placement

The Aussie chemical company issues 10- and 12-year floating rate notes to US institutions, but this time in Australian dollars.

Orica Finance, a wholly-owned subsidiary of the Australian chemical company Orica, tapped the US private placement market for a third time on Friday, but this time issuing in Australian dollars. The company raised A$559 million in guaranteed senior floating rate 10- and 12-year notes.

In a new twist, Orica received the proceeds in floating interest AUD, leaving it up to the participating investors to transact a simultaneous cross-currency interest rate swap.

Orica is claiming a world first with the deal. The traditional practice is for issuers to raise US dollars and then swap back into Aussie rates after the transaction. Though, in the past 12 months,...

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