19 February 2015
Media Release - #2015007, 2015

Retail investors opportunity to exchange CGS for eAGBs

Retail investors in Commonwealth Government Securities (CGS) will be able to exchange their holdings of CGS for the equivalent exchange-traded Australian Government Bond (eAGBs) line next month.

Offer letters will soon go out to Treasury Bond and Treasury Indexed Bond holders who are listed on the Inscribed Stock Register as at the Offer date.

eAGBs were launched on the Australian Securities Exchange on 21 May 2013 and offer a convenient and readily accessible way to invest in bonds issued by the Australian Government. 

Investors are able to buy and sell eAGBs in parcels as little as $100 face value. CGS are not able to be traded on an exchange.

For retail investors, eAGBs offer a secure, liquid investment that provides stable payments and the ability to reduce risk by diversifying their portfolios beyond investments in asset classes such as equities.

The development of a retail government bond market provides retail investors with a wider choice of investing their savings.  It represents an important step in the development of a retail corporate bond market by providing retail investors with a more visible pricing benchmark for investments they may wish to make in corporate bonds issued by Australian businesses.