Switch Tender 011

Announcement

The Australian Office of Financial Management (AOFM) will hold a tender for the issue of Treasury Bonds on Wednesday, 12 November 2008. The tender will be conducted on a switch basis with semi-government debt securities. Details of the tender are set out below.

Treasury Bonds to be Issued
Series Offered 6.25% 15 April 2015
Series Number TB119
Amount Offered ($million)+ 300
First Coupon Payment Due* 15 April 2009
First Coupon Payment Amount
(per $100 face value)
$3.125

 

Semi-government Bonds to be Purchased
Issuer TCV QTC WATC
Series 4.75% 15 October 2014 6.00% 14 October 2015 7.00% 15 April 2015
Amount Offered to Purchased ($million)+ 100 100 100

+Actual amounts issued and purchased may differ from these amounts due to rounding of amounts at the lowest accepted spread.
*Coupons will be paid at half-yearly intervals thereafter.

Lodgement of Bids

Bids may be lodged by Registered Bidders through the AOFM Tender System, which is accessed via the BLOOMBERG PROFESSIONAL ® Service, between 10.15 am and 10.30 am Australian Eastern Daylight Time on Wednesday, 12 November 2008.

The Australian Office of Financial Management will set and announce an issue yield for the Treasury Bond offered at 10.15 am on the day of the tender. Given the announced issue yield for the Treasury Bond offered, bidders will indicate the spread in basis points at which they would be prepared to sell the relevant semi-government bond in exchange for purchasing an equal face value amount of the Treasury Bond. Bids will only be able to be submitted in multiples of one half of a basis point.

Acceptance of bids will be made in descending order of spread submitted, that is, from the highest spread submitted to the lowest spread accepted. At the lowest spread accepted, the face value amount of stock switched for each bidder will be calculated proportionally to the face value amount of bids at that spread, rounded to the nearest $1 million of face value.

In all other respects, bids must comply with the Information Memorandum for Treasury Bonds dated 6 December 2007, a copy of which is available on the Australian Office of Financial Management’s website at www.aofm.gov.au.

Announcement of Results

The results of Switch Tender No. 11 are expected to be announced as soon as practicable after the closing time for the lodgement of bids on Wednesday, 12 November 2008.

Settlement Arrangements

Successful bids must be settled during Austraclear System hours on Monday, 17 November 2008. Settlement will be on a gross basis. That is, the Treasury Bonds issued by the Australian Government will be settled for their full cash value and, correspondingly the semi-government bonds purchased by the Australian Government will be settled for their full cash value.

Last updated: 8 November 2013

Results

Treasury Bonds Issued
Series Offered 6.25% 15 April 2015
Series Number TB119
Amount Offered ($million) 300
Amount Allotted ($million)+ 299
Issue Yield (%) 4.550

 

Semi-government Bonds Purchased
Issuer TCV QTC WATC
Series 4.75% 15 October 2014 6.00% 14 October 2015 7.00% 15 April 2015
Amount Offered to Purchase ($million) 100 100 100
Amount Purchased ($million)+ 99 100 100
Weighted Average Accepted Spread (basis points)# 74.5051 87.7500 85.7000
Highest Spread Accepted (basis points) 75.0 88.0 86.0
Lowest Spread Accepted (basis points) 74.0 87.5 85.0
Amount Purchased at Lowest Accepted Spread as Percentage of Amount Bid at that Spread* 57 100 32
Coverage Ratio 5.0 4.4 4.4

+Actual amounts allotted and purchased may differ from amounts offered due to rounding of amounts at the lowest accepted spread.
#The yield at which the semi-government bonds are purchased is the issue yield for the Treasury Bonds plus the accepted spread.
*Individual allotments may be higher due to rounding.

Last updated: 8 November 2013