International Investors Back BOQ Through Inaugural Covered Bond
AUSTRALIAN BANK FIRST - €500M CONDITIONAL PASS-THROUGH COVERED BOND
International debt investors have demonstrated their continued confidence in Bank of Queensland (BOQ) with the successful pricing of its inaugural €500m 5-year Conditional Pass-Through Covered Bond overnight. The transaction priced at EUR Mid Swap+25bps with the order book in excess of €1bn.
This deal further indicates BOQ’s ability to expand its funding sources following the recent S&P credit rating downgrade.
This is a landmark transaction for BOQ, following the establishment of its A$3.25bn Covered Bond Programme in May 2017. This is the first non-Euro zone Conditional Pass-Through Covered Bond and the first Euro covered bond issued by an Australian regional bank.
There was strong demand from a range of investors across Europe, with 62% of order book skewed to German and Austria investors and Asset Managers, Pension Funds, Insurers and Central Banks making up 64% of this high quality and granular order book. There were 59 investors in the final book.
The transaction helps to build out the diversity, stability and resilience of BOQ’s funding profile. BOQ Managing Director & CEO Jon Sutton said he was very pleased with the transaction.
“This transaction demonstrates there is still confidence from investors in the quality of Australian banks, and in particular BOQ,” Mr Sutton said.
Settlement date for the transaction is 10 July 2017.
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