Tuesday 08 April 2014 by Justin McCarthy Company updates

CBL Corporation Limited – five year 8.25% fixed rate initial bond offer

Key points:

  1. CBL Corporation Limited (CCL), a NZ based insurance/reinsurance company, launched an initial bond offer on Monday through FIIG Securities Limited (FIIG), seeking to raise up to A$55m from wholesale investors. The offer was closed on Tuesday, oversubscribed
  2. The A$55m bond will pay a fixed rate of 8.25% p.a. and has a final maturity of five years but can be called by the issuer after three or four years at $103.00 and $101.50 respectively
  3. The new bond is expected to settle and commence trading in the secondary market on or about 17 April 2014

CCL, a NZ based insurance/reinsurance company, launched an initial bond offer on Monday through FIIG, seeking to raise up to A$55m from wholesale investors. The offer was closed on Tuesday, oversubscribed with an issue size of A$55m expected. Please click here for the detailed research report.

The bonds will pay a fixed rate of 8.25% p.a. and have a final maturity of five years but can be called by the issuer after three or four years at $103.00 and $101.50 respectively. There is also an investor put at $101.00 in the event of a change of control.

The new issue is expected to settle and commence trading in the secondary market on or about 17 April 2014.

FIIG is the Sole Lead Arranger for this transaction with the bonds available to wholesale investors only in minimum subscription amounts of $50,000. However, once trading commences the bonds can be transacted in $10,000 face value minimum parcels.

Any (wholesale) investors who missed out on the initial bond offer or who want to trade in the secondary market should contact their FIIG representative.

These CCL bonds represent the eighth issue FIIG has brought to our clients and we hope to continue to bring exclusive offers in the fixed income asset class going forward.

The following charts demonstrate the price, yield and spread performance of the seven previous FIIG-led deals from inception to 7 April 2014, as a function of trading days since issue.

fiig originated bonds price history

Figure 1

fiig originated bonds yield history

Figure 2


fiig originated bonds spread history
Figure 3

For further information regarding this issue or to inquire about secondary trading of the CCL bonds, please contact your FIIG representative. FIIG will receive fees from the Issuer of the CCL bonds.