Tascorp has announced it will be issuing a new February 2028 bond. It has mandated several investment banks to raise a maximum of $200 million via a syndication process for the 11.5 year bonds and pricing for the deal is expected shortly.
The issue of bonds with tenors in excess of 10 years may be part of a recent trend among semi-government issuers. In April Tascorp issued $55 million worth of a new bond series with a 30 year maturity and then followed up with a $45 million tap in May. It is likely that this is part of a deliberate strategy to lengthen the state’s maturity profile with the average tenor of all semis rising. So far in 2016 the average has been 11.5 years, in 2015 it was 8.4 years and in 2014 it was 7.4 years.
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