Chicago, March 14 – Australia’s NBN Co. Ltd. priced €1.3 billion of green bonds in two parts (Aa3/AA+) on Thursday, a market source reported.
The company priced €700 million in a seven-year tranche with a 3.5% coupon. The notes priced at 99.66 to yield 3.564%, or at mid-swaps plus 85 basis points. Talk started in the mid-swaps plus 115 bps area. Guidance moved the notes into the mid-swaps plus 90 bps area during pricing.
The deal also included €600 million of 10-year notes with a 3.75% coupon. Pricing came at 99.926 to yield 3.759%, or at mid-swaps plus 108 bps. Talk was mid-swaps plus 140 bps to 145 bps initially, with a revision into the mid-swaps plus 115 bps area.
Both notes start with make-whole call protection set at Bunds plus 20 bps. There is a two-month par call option on the seven-year tranche and a three-month par call option on the 10-year tranche.
The Regulation S deal was offered by BNP Paribas (billing and delivery), Barclays, Deutsche Bank, HSBC and Societe Generale as joint bookrunners.
Proceeds will be used for eligible green projects. Sustainalytics provided a second-party opinion on the issuer’s green finance framework.
NBN is a broadband operator with headquarters in North Sydney.
| Issuer: | NBN Co. Ltd.
|
| Amount: | €1.3 billion
|
| Issue: | Senior green bonds
|
| Bookrunners: | BNP Paribas (billing and delivery), Barclays, Deutsche Bank, HSBC and Societe Generale
|
| Second opinion: | Sustainalytics
|
| Trade date: | March 14
|
| Settlement date: | March 22
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA+
|
| Distribution: | Regulation S
|
| Marketing: | Investor meetings
|
|
|
| Seven-year notes
|
| Amount: | €700 million
|
| Maturity: | March 22, 2030
|
| Coupon: | 3.5%
|
| Price: | 99.66
|
| Yield: | 3.564%
|
| Spread: | Mid-swaps plus 85 bps
|
| Call features: | Make-whole call at Bunds plus 20 bps; two-month par call
|
| Change of control: | At 101
|
| Price talk: | Mid-swaps plus 115 bps area
|
| ISIN: | XS2788379126, guided to 90 bps area
|
|
|
| 10-year notes
|
| Amount: | €600 million
|
| Maturity: | March 22, 2034
|
| Coupon: | 3.75%
|
| Price: | 99.926
|
| Yield: | 3.759%
|
| Spread: | Mid-swaps plus 108 bps
|
| Call features: | Make-whole call at Bunds plus 20 bps; three-month par call
|
| Change of control: | At 101
|
| Price talk: | Mid-swaps plus 140 bps to 145 bps, guided to 115 bps area
|
| ISIN: | XS2788379472
|
|
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