Bank of Queensland (BoQ) is reported to be in the middle of a series of investor meetings this week, with a subordinated tier 2 (non-convertible debt) transaction expected to follow.
Recent transactions from BoQ suggest a preference for issuing floating rate debt. Back in early February the bank issued $400 million worth of floating rate 2018 bonds at BBSW + 100bps and prior to that, in October 2015 they issued $500 million worth of floating rate 2019 bonds at BBSW + 115bps. Floating rate debt has been increasingly more prevalent amongst issuers in recent months so it would be fair to bet on another FRN from BoQ if and when the bond issue is announced. BoQ is rated A- by Standard & Poor’s and A3 by Moody’s.