Investing

QANTAS 2.95% 2029

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IPO Launching Soon: YTMQF4

Qantas [will issue] a 2.95% 2029 bond in the wholesale market on 07 Dec. Exposure to [$200m] 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 Qantas bonds at [a similar/the same] time as the initial wholesale bond investors. This provides a new investment opportunity for retail investors.

The Qantas XTB IPO will be exclusively available via [3] partner brokers (name 1, 2 and 3). Following its ASX-listing, the XTB will trade under the ticker code YTMQF4 (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 Qantas XTB is effectively a $100 fraction of a [$500,000] Qantas 2029 bond, traded on ASX.

By issuing XTBs with a $100 face value on ASX, XTBs open up the potential returns of corporate bonds to all investors.

A Qantas XTB has the same coupon rate and maturity date as the underlying Qantas bond – it effectively mirrors the cash flow characteristics of the wholesale market 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).

Features include:

  • A fixed coupon paid every six months on pre-determined dates
  • At maturity, the final coupon AND $100 face value of each XTB is returned
  • A predictable return of [2.75%] p.a. for the life of the investment
  • 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 predictable income and capital stability of the Qantas 2029 bond alongside the transparency and liquidity of the ASX market.

Key Benefits

  • ASX-traded – simple & accessible
  • Predictable, reliable income – pre-determined coupon dates & amounts
  • Face value returned at maturity – $100 per XTB
  • Available to SMSFs

Key Risks

  • Credit risk
  • Interest rate risk
  • Liquidity risk

How to participate in the IPO

The YTMQF4 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 YTMQF4 below

 

IPO Details and Timeline

KEY DETAILS
Initial Offer Opens 1 Nov 2020
Initial Offer Closes 5 Dec 2020
ASX Quotation Date 7 Dec 2020
Application Price $102 per unit
Limited Initial Offer $200m
Coupon Rate 2.95% p.a.
Coupon Dates 29 May & 29 Nov
Minimum Application $5,000
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

VIEW PDS

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VIEW FACTSHEET

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The Investor's Guide To YTMQF4

This free guide will help you to understand the key details of this investment opportunity and how to participate. 

The guide also covers key educational information about corporate bonds – essential reading for any prospective investor.
Please ensure you also read the PDS.