Three years after Australia Post last issued bonds into the Australian market, it has returned with a $200 million deal comprising two $100 million tranches. The deal was similar to the two-tranche structure used in 2013 and in that deal, Australia Post issued a $175 million worth of 10 year bonds and a $250 million worth of 7 year bonds, both with fixed-rate coupons. This time around there was also a 10 year tranche but the other tranche was for 5 years and its coupons are floating instead of fixed.
The 10 year tranche was priced at Swap + 130bps, 15bps higher than pricing on the 10 year tranche in 2013 while the 5 year floating rate tranche was sold at 3m BBSW + 105bps. The bonds were issued by Australian Postal Corporation, which is rated AA- by S&P Global Ratings and they are one of the few AA-rated issuers in Australia which is not a major bank. NAB and ANZ acted as Joint Lead Managers to the transaction.