ANZ sells new bonds, unguaranteed
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Tim Neary
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15/02/2010 12:00:00 AM
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ANZ Banking Group, which abandoned its plan to issue more than $1billion in guaranteed bonds last week, has rejected speculation that it faced government pressure to opt for a non-guaranteed deal instead.
The banks about-turn suggests the major lenders will stop using the scheme, dispelling predictions there would be a rush to issue under the guarantee before it expires at the end of next month, according to a report in the AFR.
After initially considering a guaranteed issue, ANZ did a one-eighty and sold $1.8 billion in four-year unguaranteed bonds last Thursday.
A guaranteed deal would have marked an abrupt reversal in the banks attitude towards the guarantee.
ANZ chief executive Mike Smith was one of the earliest advocates of removing the guarantee, memorably calling it "a drug we have to get off".
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