Lawyers in corporate practice areas are likely to be working on more bond issues like Brookfield Multiplex’s recent A$65m deal, after reports that the government is looking towards making life easier for companies to issue corporate bonds to retail investors. Both Federal Treasury and the Australian Securities and Investments Commission are examining options to simplify regulations for preparation of a retail bond prospectus. The aim is to encourage companies to refinance their borrowings via bond issues by eliminating some of the red tape.
Last week, Brookfield Multiplex launched its second secured retail bond issue for 2009, with the help of lead managers Westpac Bank and Evans & Partners. Minter Ellison advised the lead arrangers, while Mallesons Stephen Jaques advised Brookfield on the transaction. Mallesons M&A partner David Eliakim says the launch is an indication of the strength of the retail bond market in Australia.
“This is the second series of property-backed retail bonds issued by Brookfield Multiplex in the last few months, demonstrating that there is significant investor interest in this space,” he said. “The Federal Treasury and ASIC have announced they are considering measures to help expand the corporate bond market, which will give more impetus for activity in this area.”
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