Qantas Joins Apple in Pushing Aussie Bond Curve Out to 10 Years
- Aussie airline follows seven-year deal with longer offering
- Carrier raised a total of A$425 million across two tranches
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Qantas Airways Ltd. has followed iPhone maker Apple Inc. in tapping into Australian dollar investors’ hunger for the higher yields offered by longer-maturity debt with a sale of 10-year bonds, an unprecedented tenor for the airline in its local market.
The Sydney-based carrier’s A$175 million ($134 million) deal, which was priced on Friday to yield 280 basis points more than the swap rate, came a day after a A$250 million sale of seven-year notes was sold at a spread of 258 basis points. The transactions are the first from Australia’s largest airline since it regained its investment-grade credit scores at both S&P Global Ratings and Moody’s Investors Service.