AOFM Announces Syndication Of 0.25% 21 Nov '32 Indexed Bond

The AOFM announces the issue by syndication of "a new 0.25% 21 November 2032 Treasury Indexed Bond. The issue will be of a benchmark size. Initial price guidance for the issue is a spread of 16 to 19 basis points over the mid-yield of the 2.50% 20 September 2030 Treasury Indexed Bond. At the present time, this corresponds to a spread of around -181 to -178 basis points to the implied yield for the September 2021 10-Year Treasury Bond Futures contract. The issue is expected to be priced on Tuesday, 24 August 2021 and settle on Tuesday, 31 August 2021. National Australia Bank Limited; UBS AG, Australia Branch; and Westpac will act as Joint-Lead Managers for the issue. The AOFM will be mindful of the performance of the bond when considering the timing of future issuance."

• "The AOFM is prepared to buy back the 1.25% 21 February 2022 Treasury Indexed Bond line from holders at a real yield of negative 2.50%. This will be the final opportunity for holders to sell this line to the AOFM. Holders of this line are invited to submit offers at this yield via the Joint-Lead Managers (whether or not they choose to participate in the 0.25% 21 November 2032 Treasury Indexed Bond issue). All offers will be accepted in full. If an investor submits an order for the new 0.25% 21 November 2032 Treasury Indexed Bond that is not fully allocated, that investor will be able to adjust the volume of any offer accordingly. The repurchase will settle on Tuesday, 31 August 2021."