Westpac sells $1.2 bln govt-backed bonds-source

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SYDNEY, July 13 (Reuters) - Westpac Banking Corp (WBC.AX),
Australia's second-largest lender, has sold $1.2 billion of
5-year bonds backed by an Australian government guarantee, a
source familiar with the deal said on Monday.

Australian banks have been keen users of a government
guarantee put in place late last year to help them weather the
global financial crisis.

More than A$107 billion ($83.2 billion) of funds have been
raised by Australian banks, onshore and offshore, with the
sovereign guarantee since its introduction, according to
Deutsche Bank data.

Westpac's offer was part of a $1.5 billion two-tranche
issue. See [ID:nSYD463638] for details on the first tranche of
$300 million. Westpac declined to comment.

The Australian government guarantee is rated triple A by
S&P and Moody's.

Deal details are as follows:

Issuer: Westpac

Facility: Floating government-backed 144a reg S

Guarantor: Australia

Amount issued: US$1.2 billion

Maturity: July 16, 2014

Set date: July 16

Coupon: +48 bps over US Libor

Spread: +48 bps over US Libor

Issue price 100

Lead(s): Goldman Sachs and Westpac

Issuer ratings: AA (S&P), Aa1 (Moody's)

Issue ratings: AAA (S&P, Aaa (Moody's)
($1=1.286 Australian Dollar)
(Reporting by Cecile Lefort)