insto - Australian financial markets

The week ended with Members Equity Bank pricing its A$1.2 billion dual currency issue, a large-sized RMBS with a four-bank syndicate of lead managers. Two convertibles were issued on the eve of the new financial year, in which more issuance is expected.

Bank of Queensland will issue A$150 million in Lower Tier 2 convertible notes in a private placement.

The convertible notes will be issued in three tranches maturing June 2020. Tranche 1 will be A$60 million and Tranches 2 and 3 will be A$45 million. The notes will pay a monthly coupon equal to the 30 bank bill rate plus 400 basis points.

The convertible notes may be converted into BoQ shares, starting with Tranche 1 from 10 July 2011, Tranche 2 from 10 December 2011, and Tranche 3 from 10 June 2012.

In a quarter where the major theme was the return of Aussie corporates to bond markets, the Brambles transaction stood out.

Brambles is a corporate which is well known in Australia and the UK, but not so much among uS investors, despite its strong operational presence in that country.

But when the company went to the united States’ 144a bond market in March, the response from the market was almost overwhelming.

In an economy where debt is no longer readily available, Australia’s listed companies are looking to private equity to raise new capital, reports Jane Lee.

Private investments in public equity deals, known as PIPEs, involve publicly traded companies issuing preference or ordinary shares to private equity investors at a discount to their market value. Historically they have been more popular in the United States, where such transactions are now an established industry in and of themselves; varieties of the traditional PIPE are commonly used not only to raise working capital, but also to finance growth and future acquisitions.

But changed market conditions and recent regulatory reforms are making PIPEs more attractive to investors, easier to implement, and most importantly, a more common form of financing in Australia.

With the disappointment of last Thursday’s US employment data still lingering, it was an uneasy start to the week for credit markets.

Macquarie Group Limited has successfully completed the share purchase plan (SPP), announced on 1 May, receiving more than 55,000 applications from eligible shareholders for approximately $A669 million of new Macquarie ordinary shares.

An improving global outlook seems to have has given the Australian mining industry the confidence to try to brush off the embrace of Chinese government backed companies in favour of major local shareholders, reports Bernard Kellerman.

As Australia entered a long weekend, a series of emerging deals shook up the top end of our mining industry.

It was a week that should have lived in infamy for credit markets.  General Motors a symbol of US industrial might finally lost its battle to avoid bankruptcy when it filed for protection on Monday. (See our special report in the Equities section)

It was an event that had long anticipated and markets stormed ahead on positive market sentiment and insatiable appetite for credit.

*** NAB prices FRN private placement (8 August 2008) ***
NAB has issued a $A200 million floating rate note private placement.

The two year deal priced with a coupon of 65 basis points over three month BBSW.

ABN AMRO acted as sole lead manager on the transaction.

*** HSBC completes PP (17 July 2008) ***
HSBC has issued a A$200 million domestic floating rate note private placement.

The 18 month deal priced at a margin of 45 basis points over a three month BBSW.

It was launched 10 July 2008 and settled two days ago.