News

Westpac Banking Corporation (Westpac) has announced the offer size of A$1.5 billion on July 20 after launching at an indicative A$500 million through the placement of a new tier two security called Westpac Subordinated Notes. The bank already placed a new hybrid transaction in retail format in the first quarter of this year, raising A$1.2 billion.

Having priced a top up to its 2021 bond in March, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) returned to the Kangaroo market with a new 10-year bond. The transaction adds to the five lines and A$4.6 billion (US$4.66 billion) outstanding for IADB.

In the week ending July 13, Australian issuance came in pairs as Kangaroo deals held steady and corporate issuance ticked up a notch with two deals pricing in each sector. There was also a duo of syndicated semi-government deals, by New South Wales Treasury Corporation and South Australian Government Financing Authority respectively. In New Zealand, Asian Development Bank priced its third-ever Kauri.

Proposed changes to the Australian Prudential Regulation Authority (APRA)'s APS120 relating to the capital treatment banks' holdings of subordinated securitisation tranches have been left broadly unchanged following a consultation period. The regulator rejected suggestions that its existing powers are sufficient to deal with subordinated holdings, and that subordination be defined by ratings rather than position in a securitisation's capital structure.

In its third-ever Kauri transaction, according to KangaNews data, Asian Development Bank (ADB) (AAA/Aaa/AAA) has priced a new five-year Kauri transaction on July 12. ADB has previously come to the New Zealand market in January 2010 with NZ$225 million of four-year notes and in October 2011 priced a NZ$150 million, five-year deal.

Crown (BBB/Baa2/BBB) priced its debut own-name domestic bond market transaction on July 12 as guarantor of a A$275 million (US$279.8 million) fixed-rate issue by Crown Group Finance (Crown Finance). The deal, which has all the domestic big four banks as leads, has a pricing margin of 250 basis points over mid-swap.

New South Wales Treasury Corporation (TCorp) (AAA/Aaa) priceda new July 2014 benchmark bond line on July 11, with a volume of A$1 billion (US$1.02 billion). The deal, which TCorp says is brought in response to reverse enquiry, was completed via a bookbuild process on the day of launch with Citi acting as sole lead manager.

Interest in the Australian debt capital market from Korean institutions continued in the week beginning July 9 as Korea Eximbank (Kexim) commenced a roadshow in Sydney and Melbourne. The visit came just a week after another Korean quasi-sovereign corporate, Korean National Oil Corporation, also updated Australian investors with hopes of eventually becoming a consistent Kangaroo borrower.

Holcim Finance Australia (Holcim) (BBB/Baa2/BBB) priced its second domestic transaction of 2012 on July 10, pricing A$250 million (US$255.1 million) in a new five-year, fixed rate note. According to KangaNews data, this will be the first time Holcim has priced two separate transactions in Australia in the same calendar year; it sold A$250 million of three-year paper in March.

Deal flow continued steadily into the week ending July 6 2012 with two regular Kangaroo issuers returning to Australia. They were joined by a retail top up in the corporate market late in the week, though the securitisation market was quiet. New Zealand welcomed a council issue and a dual tranche domestic transaction from the banking sector.

After pricing its longest ever tenor transaction in late May, Caterpillar Financial Australia (Caterpillar) has priced its third deal of 2012 with a tap to its five-year line on July 6 2012. The top up, launched at a minimum of A$50 million (US$51.4 million) and settling at A$100 million, will add to the line's A$300 outstanding. The previous deal priced at 130 basis points over swap on May 25 2012.

Rentenbank has priced a top-up to its 5.5 per cent 2022 Kangaroo, its fourth transaction of the year after a bumper week in March saw three Kangaroos and a Kauri transaction. The German agency will add A$200 million (US$205.1 million) to the A$400 million notes in its last issue, which priced at a margin of 146 basis points over ACGB.