Qantas in new A$400m bond issue

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Qantas has issued A$400 million ($371 million) in unsecured fixed rate notes, its second issue in as many months.

The notes have been priced at 385 basis points above the asset swap rate, and will mature in June 2021. Settlement of the transaction is expected to occur on 11 June.

Qantas says in a statement to the Australian Securities Exchange that the proceeds of the issue will be used to repurchase $129 million in 6.05% notes from one investor due in April 2016, as well as other short-term debt maturities.

In May, the airline completed a A$300 million note issue as part of a programme to extend the maturity profile of its debt. That issue was priced at 400 basis points above the asset swap rate.