Treasury Indexed Bond Conversion Offer
1 May 2014
Registered Bidders are offered the opportunity to convert holdings of the August 2015 Treasury Indexed Bond into the November 2018 Treasury Indexed Bond.
The AOFM is prepared to convert each $100 face value of the August 2015 Treasury Indexed Bond (unadjusted for changes in the CPI adjusted capital value of the bond) to $100 face value of the November 2018 Treasury Indexed Bond on the following terms:
- Repurchase of the August 2015 Treasury Indexed Bond at a gross price of 180.043 (clean price of 178.582 plus accrued interest of 1.461). This equates to a real yield to maturity of 0.4775%.
- Issue of the November 2018 Treasury Indexed Bond at a gross price of 101.242 (clean price of 101.029 plus accrued interest of 0.213). This equates to a real yield to maturity of 0.9525%
- Settlement of the conversion on a gross basis within the Austraclear System on Wednesday, 7 May 2014. That is the repurchase and issue legs of the conversion will be settled as separate transactions in the Austraclear System.
- The conversion offer is open to parties that are registered to bid in tenders for the issue of Commonwealth Government Securities (‘Registered Bidders’). Holders of the August 2015 Treasury Indexed Bond who wish to convert their stock should do so via a Registered Bidder.
- Registered Bidders who wish to convert stock should telephone one of the following officials at the AOFM (Gerald Dodgson +61 2 6263 1141, Michael Bath +61 2 6263 1136, Matthew Wheadon +61 2 6263 1135 or Ashley Osborn +61 2 6263 1125) between 10.00 am and noon Australian Eastern Standard Time, Friday, 2 May 2014.
The AOFM will not conduct further conversion offers or repurchase offers in respect of the August 2015 Treasury Indexed Bond following closure of this offer.
Last updated: 12 May 2014