Monday 24 August 2015 by Trade opportunities

iBonds and breweries come to market

Apple has priced its debut AUD issue, the largest ever corporate issue in Australia at $2.25bn, across three tranches - two fixed, one floating. Meanwhile, we added SABMiller, the world’s second largest brewer to our DirectBond list - the bond is now available in $10,000 parcels

Apple store New York
Apple, the largest publically listed company in the world, announced its first issue in the Australian market to much media interest last week. The final details were announced Friday with an Australian record $2.25bn being issued across three tranches. This is more than double the previous record for a corporate bond deal of $1.0bn by BHP Billiton in October 2012.

Apple’s debut Australian iBond issue

Four year fixed Four year floating rate note (FRN) Seven year fixed
Volume A$440m A$700m A$1.15bn
Coupon rate 2.850% 3m BBSW + 65bps 3.70%
Margin to swap 65bps 65bp/3m BBSW 110bps
 Maturity date  28 August 2019  28 August 2019  28 August 2022
Source: FIIG Securities, KangaNews

The issue margins are viewed as very attractive, given Apple’s status as the largest, and one of the highest rated (AA+ by Standard & Poor’s), companies in the world.

iBonds have also been issued in USD, GBP, Euros, Yen and Swiss Francs. For individual investors, the developing bond market in Australian is positive in terms of their ability to directly access debt investments. With the view that the over-the-counter market will continue to open, like in the UK and US- where bonds are available in parcel sizes suitable to retail investors.

Recently there have been various issuances in the Australian market from large global companies such as: VW, BMW, Citibank and SABMiller (see below for more details), to name a few.

SABMiller now available in $10,000 parcels

Another highly rated corporate, global brewer SABMiller, has also been active in the Australian market issuing a 3.75% fixed rate bond with an August 2020 maturity.  The A- rated by Standard & Poor’s notes have been added  to our DirectBond list, and are available to wholesale investors in $10,000 parcels.

SABMiller plc is the world's second largest brewer by volume and the third largest by net revenues producing and distributing a large variety of beer brands in approximately 75 countries. During its financial year ending March 2015, the company sold 245.8 million hectolitres of lager, and 70.3 million hectolitres of soft drinks, up 8% organically during the year, for total revenue of USD22.1bn (down 1% compared to the prior year).

For more information, please see the SABMiller Senior Unsecured Bond Factsheet or contact your FIIG representative.