National Australia Bank Ltd. is planning a sale of dollar-denominated debt as the nation’s lenders boost offerings in the U.S currency to the most in 45 weeks. Corporate bond risk in Australia and Japan fell.
Bank of Queensland Ltd. , the regional Australian lender formed in 1874, sold A$1.6 billion ($1.4 billion) of residential mortgage-backed bonds in the nation’s biggest sale of the securities this year.
Australian non-financial companies are selling the most bonds locally in four years while extending maturities as investors seeking alternatives to bank debt become increasingly willing to buy longer-dated notes.
Bond sales in Australia climbed to a record for the first half after banks, companies and top-rated foreign borrowers took advantage of yields that dropped to a three-year low relative to government debt.
Borrowers issued the fewest bonds in Australia in almost three years last quarter as Europe’s budget crisis roiled markets, driving up yield premiums, while the nation’s banks used record term deposits to cut debt offerings.
CFS Retail Property Trust , a real estate trust that invests in shopping centers, sold A$450 million ($438 million) of bonds in the biggest domestic debt issue by an Australian property company in more than four years.