FIIG completes corporate bond offer

Fixed income broker FIIG Securities has completed a second corporate bond offer with the closure of a $50 million, five-year 7.25 per cent fixed rate, unrated wholesale bond for Queensland-based sugar milling company Mackay Sugar Limited.

FIIG said this week the order book for the bond offer opened last Wednesday and closed that afternoon, with over 300 professional and sophisticated investors participating in the transaction.

It said the offer remained open for Mackay shareholders and growers.

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According to FIIG, the issue is only the second of its kind in Australia and follows a similar $30 million bond issue arranged for equipment financier Silver Chef Limited in August last year.

Commenting on the offer, FIIG Securities chief executive Mark Paton said the demand for the offer from wholesale investors pointed to a strong future for the unrated corporate bond market.

"There is extremely strong unmet investor appetite for this type of issuance and we believe the market will continue to grow as more companies become aware that this attractive long-duration funding is available," he said.

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