Qantas 2021 bond now available to retail investors and issuer rating outlook upgraded to positive from stable by ratings agency Moody’s
We are pleased to announce the Qantas 7.50% fixed rate bond maturing on 11 June 2021 has been added to the Direct Bonds list and is now available to retail investors. With an indicative yield to maturity of 5.51%, the bond is one of the highest yielding available to retail investors. The bond is available in minimum investment amounts of $10,000.
Qantas is a household name to most Australians and is the country’s flagship airline. Qantas experienced a challenging period up to the first half of 2014 when its credit rating was downgraded to below investment grade. However, since then the airline has significantly turned around its business. The 1H15 result saw a return to profitability with an underlying profit before tax of $367m for 1H15, up from a $252m loss in 1H14. Further, the result overshot its own guidance for the half year. The company has highlighted than an improvement in credit metrics is a priority and is targeting a $1bn debt reduction by the end of FY15.
The Qantas 2022 bond recently became available to retail on 19 May.
Further, a release to the ASX last Thursday 18 June revealed that ratings agency, Moody’s have affirmed Qantas’ credit rating and have upgraded its rating outlook from stable to positive. This outlook upgrade is a reflection of the “reduction in adjusted debt” and also “considers the considerable progress the company has made…as well as the benefits being realised from weakening of the Australian dollar and lower fuel prices.” (From the ASX statement, quoted Matthew Moore a Moody’s Vice President – Senior Analyst)
The Qantas research report can be found in the related articles below.
Please note pricing is indicative only and subject to change. Please contact your FIIG representative for more information on the Qantas 2021 bond.