About BCU

$40 million deal for BCU
Saturday, 27 March 2010 02:34
BCU priced $25 million of three-year notes at 60 basis points over swap and $15m of two-year notes at 55 basis points over swap.

This transaction is the first time that BCU has issued a senior debt into the wholesale debt markets, and is the first Government guaranteed transaction undertaken by BCU.

BCU Chief Executive Mr Lyndon Kingston said he was pleased with the transaction.

“Diversifying, and lengthening the term of our funding is a fundamental part of our ongoing business strategy. This presented an opportunity to fund the growth we are experiencing in our business,” Mr Kingston said.

He said BCU had decided to issue at this time due to the withdrawal of the Government guaranteed wholesale funding arrangements on March 31, 2010.

The proceeds from the $40 million transaction will be used to continue to provide financial products and services to BCU members.