ABB Ltd., the world’s largest maker of power transformers, is marketing at least A$300 million ($313 million) of bonds in its debut debt offering in Australia.
The Zurich-based company’s ABB Finance (Australia) Pty unit is seeking to sell five-year notes yielding about 120 basis points more than the swap rate, according to an e-mailed statement from Australia & New Zealand Banking Group Ltd., which is managing the deal with UBS AG. The sale will be the first that ABB has marketed in the South Pacific nation, and its first in the Australian currency since a A$100 million sale of so-called Eurobonds in 1997, data compiled by Bloomberg show.
Issuers are showing renewed interest in Australian corporate bonds after yield premiums tumbled to a 16-month low and investors demonstrated they’re willing to provide larger pools of funding. Telstra Corp. sold its biggest-ever debt issue in the nation on Nov. 8 after BHP Billiton Ltd. priced A$1 billion of notes last month in the first Australian dollar-denominated sale from the world’s biggest miner in more than a decade, Bloomberg-compiled data show.
ABB plans to price its offering tomorrow, according to the statement. The company has an A credit rating from Standard & Poor’s, the sixth-highest grade, and the equivalent A2 from Moody’s Investors Service.