The Australian unit of Royal Bank of Scotland has raised A$1.085 billion ($757.7 million) in one-year bonds, market sources say.
The offer included three tranches, the sources said:
1) A$435 million of 364-day government-guaranteed floating rate notes at 60 basis points over BBSW;
2) A$550 million of 364-day non-guaranteed fixed rate certificates of deposit at 130 basis points over swap; and
3) A$100 million of 364-day non-guaranteed floating rate notes at 130 basis points over BBSW.
The issuer, RBS Plc Australia branch, is rated AA- by S&P, Aa1 by Moody’s and AA- by Fitch.
The notes settle on December 23.
Macquarie Bank, RBS and Westpac Institutional Bank jointly led the offer.
RBS is the seventh bank in Australia to sell government-backed bonds following a programme put in place last month to guarantee all bond issues to help banks weather the credit crisis.
It is also the first foreign bank to use the Australian government guarantee. The programme allows foreign banks to use the sovereign guarantee until December 31 2009.
Banks in Australia have raised over $11 billion equivalent in government-guaranteed bonds. Such bonds are rated triple A by major ratings agencies.
D.C.