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.

Related News: Victorian financial services firm fined $12k

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.




Related Content

VanEck ETF ‘recommended’ by Lonsec

VanEck's Australian resources exchange traded fund (ETF) has received a ‘recommended' rating from Lonsec, as it has strong conviction and risk adjus...more

OneVue appointment backs fund services growth

Financial services group, OneVue, has moved to underpin the rapid growth of its fund services business with a new appointment.The company announced th...more

Australian Ethical net profit up in June

Australian Ethical Investments has reported a 53 per cent increase in its net profit after tax (NPAT), counting year-on-year, which was driven by stro...more

Author

Comments

Add new comment