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. 


The contents of this document are copyright. Other than under the Copyright Act 1968 (Cth), no part of it may be reproduced or  distributed to a third party without FIIG’s prior written permission other than to the recipient’s accountants, tax advisors and lawyers for the purpose of the recipient obtaining advice prior to making any investment decision. FIIG asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights.

Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to significant known and unknown uncertainties, risks and contingencies outside the control of the company which may cause actual results to vary materially from those expressed or implied by these forward looking statements. Forward-looking statements contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Opinions expressed are present opinions only and are subject to change without further notice.

No representation or warranty is given as to the accuracy or completeness of the information contained herein. There is no obligation to update, modify or amend the information or to otherwise notify the recipient if information, opinion, projection, forward-looking statement, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

FIIG shall not have any liability, contingent or otherwise, to any user of the information or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the information. In no event will FIIG be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using information even if it has been advised of the possibility of such damages.

FIIG provides general financial product advice only. As a result, this document, and any information or advice, has been provided by FIIG without taking account of your objectives, financial situation and needs. Because of this, you should, before acting on any advice from FIIG, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If this document, or any advice, relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a product disclosure statement relating to the product and consider the statement before making any decision about whether to acquire the product. Neither FIIG, nor any of its directors, authorised representatives, employees, or agents, makes any representation or warranty as to the reliability, accuracy, or completeness, of this document or any advice. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, this document or advice. Any reference to credit ratings of companies, entities or financial products must only be relied upon by a ‘wholesale client’ as that term is defined in section 761G of the Corporations Act 2001 (Cth). FIIG strongly recommends that you seek independent accounting, financial, taxation, and legal advice, tailored to your specific objectives, financial situation or needs, prior to making any investment decision. FIIG does not provide tax advice and is not a registered tax agent or tax (financial) advisor, nor are any of FIIG’s staff or authorised representatives. FIIG does not make a market in the securities or products that may be referred to in this document. A copy of FIIG’s current Financial Services Guide is available at

An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product described on any communication from FIIG is not a reliable indication of future performance. Forecasts contained in this document are predictive in character and based on assumptions such as a 2.5% p.a. assumed rate of inflation, foreign exchange rates or forward interest rate curves generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. FIIG is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. The information in this document is strictly confidential. If you are not the intended recipient of the information contained in this document, you may not disclose or use the information in any way. No liability is accepted for any unauthorised use of the information contained in this document. FIIG is the owner of the copyright material in this document unless otherwise specified.

The FIIG research analyst certifies that any views expressed in this document accurately reflect their views about the companies and financial products referred to in this document and that their remuneration is not directly or indirectly related to the views of the research analyst. This document is not available for distribution outside Australia and New Zealand and may not be passed on to any third party without the prior written consent of FIIG. FIIG, its directors and employees and related parties may have an interest in the company and any securities issued by the company and earn fees or revenue in relation to dealing in those securities.