Wednesday 04 September 2019 by Erryn Lloyd-Jones Opinion

Unrated High Yield Bonds – unique to FIIG

On the 26th of August, FIIG settled the latest in a long line of unrated, high yield Australian corporate bond issues, a 7.00% fixed rate 7-year bond for long-standing Brisbane-based diversified property group W.A Stockwell.

Unrated High Yield Bonds – unique to FIIG

Since issuing the first unrated Corporate Bond in the Australian market in September 2012, FIIG has been a market leader in the domestic unrated Debt Capital Market. 

FIIG’s origination expertise stems from raising more than $2.5bn across more than 60 Australian companies in the 7 years since that first $30m issue. Throughout the journey, FIIG has provided long term, flexible funding to a broad range of Australian companies, with the ability to structure a financing solution tailored to each issuer and its respective strategic goals. 

Working to achieve the optimal outcome for the issuer is only half the story however, as FIIG is able to balance the needs of the issuer while also presenting its clients with bonds that protect their investment capital and provide a compelling return for the associated risk profile. 

One of the key benefits wholesale FIIG clients enjoy is direct access to all new bond issuance from the FIIG Origination team in the primary market. Over the last 12 months, clients have been able to participate in primary issuance for highly-regarded Australian companies such as Zenith Energy, Zipco, W.A. Stockwell, SCT Logistics and WorkPac Group. 

5 Sept Wire DCM Zenithzip-ts

The SCT Logistics transaction was the largest unrated private company bond issuance in Australian corporate history.

These businesses provide excellent examples of the diversity of issuer that FIIG offers its clients, demonstrating the ability to invest in both ASX-listed companies and private companies across a range of industries including Property, Financials, Infrastructure and Professional Services.

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5 Sept Wire DCM Plenary

In the last two years alone, FIIG has been able to offer its Wholesale clients the ability to invest in 12 Australian companies across more than half a billion dollars in debt financing.   
FIIG’s presence in the origination market is most readily demonstrated by the recently released Solactive FIIG Australian High Yield and Non-Rated Bond TR Index. Of the 51 constituents, FIIG-arranged issues represent almost 50%. FIIG is able to offer its clients  direct access to the primary market, with the ability to invest in parcels as small as $50,000.

Please contact your Relationship Manager or open an account to get access to originations such as these.        

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