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Strong demand for WATC’s latest FRN saw the pricing come in at the lower end of the indicative 30-33bps range. Bids were in excess of $1.2 billion for the $750 million benchmark transaction. The sale is WATC’s first for 2016.
WATC is reported to be in the process of launching a new floating rate 5 year benchmark bond issue. Its last foray into the domestic bond market was in early December when it issued a new line of March 2019 FRNs priced at 3m BBSW + 22bps worth $250 million. Western Australia had its credit rating downgraded by Moody’s in early February, so observers will be interested in how this next issue is priced relative to the December one. So far Standard & Poor’s has left the state’s rating at AA+, having downgraded the state from AAA in 2013.
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