UPDATE 1-JPMorgan prices A$1 bln 5-year bond at 130bp/swap

(Adds deal details)
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SYDNEY, March 4 (Reuters) - JPMorgan Chase & Co (JPM.N)
priced A$1 billion ($906 million) worth of five-year bonds at
130 basis points over swap and BBSW on Thursday, becoming the
first U.S. bank to sell a bond in Australia since the credit
crisis.

Demand for the bond was strong, with over 80 investors
buying into the deal.

JPMorgan was also the last U.S. bank to have sold a bond in
Australia before the credit crisis struck. Back in June 2007,
it sold A$950 million worth of five-year bonds at 20 basis
points over swap, less than six times what the bank paid this
time.

"It makes sense to see the strongest banks coming first,"
said Ken Hanton, senior analyst credit research at National
Australia Bank.

He said JPMorgan, HSBC and Canadian banks were best placed
to further tap Australia's bond market.

The JPMorgan deal consisted of A$700 million in fixed rate
notes and A$300 million in floating rate notes, with a margin
exactly in line with initial indications.

Over A$10 billion worth of kangaroo bonds, or
Australian-dollar denominated bonds sold by foreign borrowers
in Australia, have been sold this year, ADCM data shows.

The strong foreign demand for kangaroo bonds is driven by
favourable swap rates that make it cheaper for foreign
borrowers to raise money in Australia.

Deal details are as follows:

Issuer: JPMorgan Chase & Co.

Facility: Domestic kangaroo fixed and floating rate

notes

Amount issued: A$1 billion

Maturity: March 11, 2015

Set date: March 11

Lead(s): JPMorgan

Co-managers: ANZ, CBA, NAB, Westpac

Issuer ratings: A+ (S&P), Aa3 (Moody's), AA- (Fitch)

Tranche: Fixed FRN

Amount: A$700 mln A$300 mln

Coupon: 6.75% +130bp/BBSW

Yield: 6.8525% +130bp/BBSW

Spread: +130bp/swap +130bp/BBSW

+170.5bp/April 2015 bond

Issue price 99.572 100
(Reporting by Cecile Lefort; Editing by Koh Gui Qing)