Queensland Treasury Corporation today priced a new benchmark 11 year bond. The new bond will mature in October 2026 and pay a semi-annual coupon of 3.25%pa. The size of the issue was $1.75 billion and they carry an AA+ (stable) rating from Standard & Poor’s and a Aa1 (negative) rating from Moody’s. The bonds will go part of the way to re-finance QTC’s $4.022 billion October 2015 bond that matured recently.
The issue yield to maturity was 3.33% or 63bps above the April 2026 commonwealth government bond (or EFP + 67bps) and the issue was led by ANZ, Citigroup and UBS.
QTC has $68.44 billion of benchmark AUD debt outstanding as well as $7.05 billion of floating rate notes. The chart below shows the present maturity profile of QTC’s regular bond issuance.
