SYDNEY, June 6 (Reuters Basis Point) - National Australia
Bank, Australia's largest business bank, is looking to
tie up with Wells Fargo & Co to bring Australian
borrowers to the U.S. term loan B and high-yield bond markets,
banking sources familiar with the initiative said on Thursday.
An alliance with Wells Fargo would make NAB the first
Australian major bank to set up a business to compete directly
with the investment banks such as JP Morgan and Bank of
America Merrill Lynch who dominate the lucrative term
loan B market.
The U.S. term loan B market is a sub-investment grade or
"junk" bond market, offering riskier borrowers long-term funding
at attractive pricing compared to the Australian bank loan
The sources could not be named as they were not authorised
to speak on the matter. A NAB spokeswoman declined to comment
while Wells Fargo was not immediately available for comment.
A number of Australian companies including Fortescue Metals
Group and private-equity owned Hoyts Cinemas have successfully
tapped the TLB market in the last 12 months, with year-to-date
issuance topping $3.74 billion according to Loan Pricing Corp