Holcim prices A$500m 3-yr bond issue

Holcim prices A$500m 3-yr bond issue
04 August 2009

The Australian unit of Holcim has priced A$500m (US$423m) in three-year notes at 335 basis points over swap, a market source who has seen the terms said on Tuesday.

 It was the largest bond issue for non-financial borrowers in Australia this year.

Such bonds have taken off with a string of new issues in the past month, reviving a market dormant since 2007 when the global financial crisis hit

Initial price guidance of Holcim’s issue indicated around 350 basis points with an issue size of at least A$150m.

Strong demand, in particular from Europe and Asia where Holcim has operations, allowed the orderbook to exceed A$750m, according to a joint lead.

 As a result, Holcim more than tripled the issue size and was able to reduce the margin to 335bps.

Source: Reuters
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