Australia to raise A$6b via 20-year syndicated bond

[SYDNEY] Australia plans to raise A$6 billion (S$5.8 billion) via a new 20-year syndicated bond issuance next week, the government's debt management agency said in a statement on Friday.

National Australia Bank, TD Securities, UBS and Westpac are the joint lead managers for the 2.75 per cent 21 May 2041 offering, the Australian Office of Financial Management (AOFM) added.

The AOFM has issued almost A$200 billion in Treasury bonds since March to help the government meet its enormous expenditure plans brought by the COVID-19 pandemic.

Australia's debt is among the highest yielding in the developed world, underpinned by its central bank's yield-curve control policy and quantitative easing programme.

Earlier this week, the Reserve Bank of Australia (RBA) announced a A$100 billion bond-buying programme targeting long-dated debt.

REUTERS