A big thank you to all of our clients who have supported our efforts in opening up the unrated corporate bond market. Yesterday we reached a milestone $1 billion via 21 originated bond issues, answering your request for higher yield opportunities
Settling the Integrated Packaging Group deal yesterday, marked the 21st bond issue since the business began in 2012 with the launch of the cafe rental equipment supplier, SilverChef’s $30 million fixed rate bond. The recent launch of the Axsesstoday $20m issue, will bring the number of issues to 22 once it closes.
CEO Mark Paton said that passing the $1 billion mark was not just an abstract achievement but one that puts the credibility and sustainability of the market beyond doubt in the eyes of both potential issuers and investors, further underpinning its growth.
“When FIIG started this journey three years ago the Australian corporate bond market was an exclusive club available to rated issuers.” Mr Paton said.
“Today, because of our work opening the market and now passing $1 billion in issuance, it is a proven and reliable funding source for all types of corporate borrowers and provides dependable income for thousands of Australian investors.”
Key points
- The bond issues have varied by size, duration, structure, and fixed or floating rate, illustrating the tailored nature of the funding depending on the requirements of the company and investor preference for some bonds compared to others at the time of funding
- All of the issues have been successful, meeting the originating companies’ target capital amounts
- Two bonds have been repaid, Silverchef refinanced with a new $300m syndicated debt transaction between five banks and catalogue printer, PMP refinanced its original bond with a new FIIG deal
- While the prices of the originated bonds have gone up and down as we would expect they have all met all of their interest and principal repayment obligations
- The coupons (interest payments) on the bonds have ranged from 6.1% per annum to 9.5% per annum for fixed rate bonds and for floating rate bonds, the benchmark plus 390bps to 650bps per annum
- There are currently over 3,500 unique holders of FIIG originated bonds, including a large number of retail investors
- Ten of the 21 bonds are now available to retail investors, including: Mackay Sugar, G8 Education fixed and floating issues, first PMP issue, Payce, Cash Converters, Plenary, CBL, 360 Capital and Coffey
The companies that have issued bonds include: Integrated Property Group ($40m), Stockwell ($35m), SCT Logistics ($85m) CML Group ($25m) MoneyTech Finance ($25m), McPhersons Limited ($60m), Dicker Data, ($40m), 360 Capital Group ($75m), Coffey International ($40m), Plenary Group ($30m), Antares Energy ($20m), Adani Abbott Point Terminal ($100m), CBL Insurance ($55m), Payce Consolidated ($50m), PMP Limited ($50m and $40m), Cash Converters ($60m), G8 Education ($70m and $50m), Mackay Sugar ($50m), and Silver Chef ($30m) (see below).
Source: FIIG Securities
Once again, thank you for contributing to the success of the new bond deals. We look forward to continuing to offer you access to a diverse range of corporate bonds in the coming months.
If you are interested to read more please click here
for a feature in the most recent addition of KangaNews.