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  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).
- 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.
- ASX-traded – simple & accessible
- Predictable, reliable income – pre-determined coupon dates & amounts
- 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 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
|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|
|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|