ASB have launched a new 5 year senior bond offer today. The notes are unsecured, unsubordinated obligations of the bank, with the offer size being NZD150 million with unlimited oversubscriptions.

The issuer, namely ASB Bank Limited, holds an AA credit rating with Standard and Poors. This fixed rate deal is being offered at a spread to swaps of 175bps which at the current market equates to a yield of 6.08%. Based on both recent new bank issuance and the existing secondary market for senior bank debt securities we view the spread as being comparable.

The offer opens on the 13^th of October and closes on the 15^th. The rate set occurs on the 18^th of October.