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Swiss Franc public bond issue



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NO. 28

TREASURER

EMBARGO

PRESS RELEASE

STATEMENT BY THE ACTING TREASURER, THE HON ERIC ROBINSON, MP SWISS FRANC PUBLIC BOND ISSUE .

The Acting Treasurer, the Hon Eric Robinson, MP, today announced that

final terms for the Commonwealth's tenth public bond issue in

Switzerland, initially foreshadowed in the Treasurer's press statement

of 14 February, had been agreed to today.

Documentation for the borrowing will be signed in Basle on 19 March by

the Australian Ambassador to Switzerland, His Excellency Mr K.G. Brennan.

The borrowing, for an amount of SF250 million ($Α133·4 million

approximately), is the final component in a borrowing package which

included a SF250 million bank loan and a SF250 million private

placement. Details of the bank loan and private placement were

announced in the Treasurer's press statement of 22 February.

Mr Robinson said that the lead manager for the public issue is Swiss

Bank Corporation, and co-managers are Credit Suisse and Union Bank of

Switzerland. ■ >

The issue will carry an interest rate of 3.625 per cent and Will be

issued at a price of 99.25 per cent to provide investors a yield of

3.72 per cent per annum if bonds are held to maturity.

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The loan will mature in 1989, and will be repaid in a series of annual

instalments commencing in 1984, to give an average life of 8.5 years.

Commissions and fees payable on the loan total 3.15 per cent.

These terms are regarded as very favourable to the Commonwealth given

present conditions in the Swiss Franc bond market.

Proceeds of the public issue will be received in early April.

CANBERRA ACT

12 Mar 1979

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