Allens has advised Citigroup, Deutsche Bank, J.P. Morgan, SMBC Nikko and TD Securities on the issuance of A$2.2 billion junior subordinated notes by Verizon Communications, the US telecom giant.
The jumbo bond transaction represents only the second ever kangaroo hybrid bond issued in the Australian market and attracted a strong orderbook, underlining significant investor appetite for high‑quality offshore issuers accessing the Australian dollar hybrid market. The issuance was made in four tranches, and was the second-largest corporate bond ever issued in the Australian dollar market.
'The deal is notable for both its scale and its role in further establishing Australia as a viable and attractive market for hybrid capital from offshore corporate issuers,' said lead partner James Darcy.
'The success of the issuance is expected to encourage further kangaroo hybrid issuances from international issuers seeking diversification of funding sources and to access to deep Australian dollar institutional demand.'
Allens has seen growing momentum in this space, having also advised on the first kangaroo hybrid bond issued in Australia, namely the landmark Australian dollar subordinated hybrid bond issuance by a US corporate, as well as on kangaroo bond issuances for Vonovia SE and The Weir Group. Together, these transactions highlight Allens' role in the continuing evolution and internationalisation of Australia’s debt capital markets.
Allens legal team
Banking & Finance
James Darcy (Partner), Ugo Ba (Senior Associate), Shruti Sudarsan (Associate)