Initial Offer Now Open: YTMxxx
Centuria Funds Limited will issue a 5.50% 2026 bond in the wholesale market on xx Sep. Exposure to [$100m] of the bond will be available for retail investors via ASX-traded XTBs.
This XTB IPO provides retail investors with access to the potential returns from the Centuria bond at [a similar/the same] time as the initial wholesale bond investors. This provides a new investment opportunity for retail investors.
The Centuria XTB IPO will be exclusively available via  partner brokers (name 1, 2, 3 and 4). Following its ASX-listing, the XTB will trade under the ticker code YTMxxx (link to bond detail page?).
IPO investments start at [$5,000] in single XTB units.
Post-IPO, there is no minimum when buying or selling XTBs.
How the XTB works
Each Centuria XTB unit is effectively a $100 fraction of the [$100,000] Centuria 2026 bond, traded on ASX.
By issuing XTBs with a $100 face value on ASX, the potential returns of corporate bonds are opened up to all investors.
The XTB has the same coupon rate and maturity date as the underlying Centuria bond – the XTB effectively mirrors the cash flow characteristics of the bond.
Investing at IPO and holding to maturity provides a capital stable, regular source of income (subject to the terms of the bond and assuming the issuer does not default).
- A floating-rate coupon paid each quarter on pre-determined dates
- The coupon rate is determined by the 3-month bank bill swap rate (BBSW)
- An expected return of between [x.xx% and x.xx%] p.a. for the life of the investment
- At maturity, the final coupon AND $100 face value of each XTB is returned
- Transparent and known fees. The securities manager margin of [0.4%] p.a. is included in the XTB purchase price.
Investor Cash Flows
The XTB provides exposure to the regular income and capital stability of the Centuria Funds Management 2026 bond alongside the transparency and liquidity of the ASX market.
- ASX-traded – simple & accessible
- Regular income stream – pre-determined coupon dates
- Face value returned at maturity – $100 per XTB
- Available to SMSFs
- Credit risk
- Interest rate risk
- Liquidity risk
How to participate in the IPO
The YTMxxx IPO is available exclusively through the following brokers. Contact them to find out more about the offer and apply.
Find out more
Read our FAQs and download a copy of the Investors Guide to YTMxxx below.
|Initial Offer Opens||1 Sep 2021|
|Initial Offer Closes||30 Sep 2021|
|ASX Quotation Date||01 Oct 2021|
|Application Price||$102 per unit|
|Limited Initial Offer||$100m|
|Coupon Rate||BBSW+x.xx% p.a.|
|Coupon Dates||xx, xx, xx & xx|
|3-Month BBSW Rate||0.0174% (Source ASX 29 Jul 2021)|
|Expected Annual Return||From xx.xx% to xx.xx%|
|Capital Structure||Senior Unsecured|
|Security Manager’s Fee||0.40% p.a.
(incl. within application price)
|IPO available through||Bell Direct, Desktop Broker, Morgans and Shaws|
|Asset Class||Fixed Income|
|Asset Class Categorisation||Defensive|