December 6, 2022

california cargiver

Awesome Business

Australia’s Westpac to tap U.S. dollar bond market

1 min read

© Reuters. FILE PHOTO: An office building with Westpac logo is seen amidst the easing of the coronavirus disease (COVID-19) restrictions in the Central Business District of Sydney, Australia, June 3, 2020. REUTERS/Loren Elliott

By Scott Murdoch

SYDNEY (Reuters) – Australia’s Westpac Banking (NYSE:) Corp has mandated banks to work on two- and five-year U.S. dollar bond issuances, according to a term sheet reviewed by Reuters.

It becomes the second Australian institution to tap international funding markets in two days, after Australia and New Zealand Banking Group raised 2 billion euros ($2.01 billion) in a covered bond on Tuesday.

Westpac did not immediately respond to a request for comment.

Westpac raised A$2.8 billion ($1.82 billion) in an Australian-dollar-denominated bond on Monday, domestic media said.

The bank plans to issue in U.S. dollars a two-year fixed rate bond, a two-year floating rate note, and a five-year fixed rate transaction, the term sheet showed.

On Monday the bank reported a drop of 1.4% in its cash earnings to A$5.28 billion for the year ended Sept. 30

It mandated Bank of America (NYSE:), Citigroup (NYSE:) and JPMorgan (NYSE:) to work on the deal along with its own institutional desk.

The final pricing is due to be set later in the New York trading session on Wednesday, subject to market conditions, according to the term sheet.

Westpac planned to use the U.S. dollar proceeds from the bonds for general corporate purposes, the term sheet showed.

($1=0.9930 euros)

($1=A$1.5399)