BHP prices Aussie note

BHP Billiton has priced a five-year $A1 billion note issue under its Australian medium-term note program.

Kristie Batten

The Australian dollar notes will pay interest at 3% and mature in March 2020.

Proceeds will be used for general corporate purposes.

The last time BHP issued Australian notes was in October 2012.

The issue comes only a day after smaller iron ore rival Fortescue Metals Group was forced to pull a planned note offer in the US due to unfavourable terms.

IG Market’s Evan Lucas said unless a resources company offered attractive yield, as was the case with BHP and Rio Tinto, investors seemed uninterested.

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