BOQ prices $250m notes
Bank of Queensland Limited (BOQ) priced a $250 million of 2012 Government Guaranteed fixed and floating rate notes. While acknowledging the need for a government guarantee, BOQ has previously criticised its differential cost structure.
At the group’s AGM in December, Chairman Neil Summerson said the differential price structure put the regional banks at a competitive disadvantage.
“One of the most challenging consequences of the global financial crisis has been the severe contraction of traditional wholesale funding channels and while the Federal Government’s guarantee has been necessary in assisting banks to secure wholesale funding, this has been at a higher cost for regional banks,” he said.
In the latest notes issue, both the fixed and floating rate tranches were increased by $125 million.
BOQ said the transaction would be issued from Bank of Queensland's $4 billion Debt Instrument Programme and was driven by reverse enquiry demand.
The fixed and floating rate notes will have a maturity of 22 October 2012 and are priced at ASW +30 bps and 3-month BBSW +30 bps respectively. Settlement will be on the 29 January 2010.
At 1123 AEDT, Bank of Queensland shares were down 20c at $10.96.
Leave a Reply