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: Retarget super tax concessions, says ISA

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

Kicking the super can down the road

What a pity the February, March and April rhetoric of the Treasurer, Scott Morrison, was not matched in the reality of his first Federal Budget in May...more

FX traders to grow

The number of people who stopped trading foreign exchange (FX) was matched by those who started or resume trading, the first time in four years, accor...more

FIIG Securities launches bonds mobile app

FIIG Securities has launched a mobile application for access to Australian corporate bonds, which shows prices, historic charts, yields and research o...more



Add new comment