Australia's perth airport left its debut sterling bond on the runway last week after a lukewarm response from investors, choosing instead to increase a domestic seven-year offering. Lead managers CBA and RBC went as far as taking indications of interest for a proposed £150m 12-year sterling debut in the area of 165bp over Gilts, before cancelling the transaction in London on Monday. This was clearly a disappointing outcome, as Perth Airport had held investor meetings on the deal in early March, which meant the leads should have had a good idea of appetite at the level when they started collecting indications. Sterling supply has been thin in recent months, so fund managers in the UK should have been eager to get their hands on a new issue offering a decent yield.
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