On Monday, AGL planned to issue $200 million worth of domestic medium term notes, however on Tuesday the five year fixed rate notes were priced at $300 million, an oversubscription of 50 per cent.
AGL said the re-offer yield was set at 6.98%, which was equivalent to $A mid-swaps + 68 basis points (Commonwealth Government Loan 10/07 + 94 bp). The notes are paying a semi annual coupon of 7% and will mature on 15 October 2007.
"AGL's $300 million October 2007 issue today complements AGL's existing $300 million July 2004 issue and is a further step towards AGL's goal of building an Australian dollar yield curve for the company," said AGL's group general manager finance, Mr John Fletcher.
ABN AMRO and the Commonwealth Bank acted as joint lead managers for the transaction. AGL said the money will be used to refinance bank debt.
