News
Qantas Airways (Qantas) returned to the domestic market on June 4 – just three weeks after it became the first sub-investment-grade rated company to bring an Australian dollar domestic deal in the wholesale market. In the wake of the latest transaction, the deal's lead manager tells KangaNews that Qantas is blazing a trail that other issuers may follow.
ING Bank Australia (ING Australia) priced its first residential mortgage-backed securities (RMBS) issue of 2014 with expected ratings assigned to the new deal on June 2. IDOL 2014-1 Trust has a three-tranche structure with an indicative aggregate volume of A$500 million (US$465.2 million), upsized to A$1.25 billion on pricing.
Rentenbank (AAA/Aaa/AAA) priced a further increase to its existing A$1.15 billion (US$1.06 billion) April 2024 Kangaroo line on June 4. According to KangaNews data, the line was first introduced in September 2013 with a volume of A$200 million and pricing of 93.5 basis points over Australian government bond (ACGB).
Lend Lease Group (Lend Lease) (BBB-/Baa3) priced a tap to its May 2020 bond in the Australian domestic market on June 4. The issue was priced in line with indicative volume and price suggestions of A$100 million (US$92.8 million) and 180 basis area points over semi-quarterly swap.
Queensland Treasury Corporation (QTC)'s post-state budget funding update does not factor in the state government's plan to reduce debt by A$25 billion (US$23.2 billion) via a series of asset transactions. However, even before these transactions become a reality – which is conditional on the state government winning re-election in the next year – analysts note Queensland's improving fiscal path leading to an expected decline in debt levels from 2016-17.
Qantas Airways (Qantas) (BB+/Ba1) priced a new seven-year transaction in the Australian domestic market on June 4, in the issuer's second deal in less than a month. Qantas priced the first-ever Australian dollar domestic wholesale-market transaction from a sub-investment-grade rated corporate issuer on May 12.
Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa1) priced a new AUD-denominated issue on June 2. The fixed-rate benchmark transaction is Tascorp's first public syndicated issuance in over a year.
The debut of ALE Direct Property Trust, the issuing entity of ALE Property Group (ALE), in the senior wholesale market marks the beginning of a transformation of the group from a largely secured to a predominantly unsecured borrower. Meanwhile, deal sources say the shape of the domestic yield curve continues to drive demand for longer tenors and lower-rated issuers.
The Reserve Bank of Australia (RBA) elected to leave the official cash rate (OCR) unchanged for the ninth consecutive month at its June board meeting. Analysts note only modest changes to the reserve bank's apparent sentiment and find the most striking difference to RBA opinion to be what is missing from the post-announcement commentary.
New Zealand's Local Government Funding Agency (LGFA) appointed Mark Butcher as its new chief executive on June 3. Butcher, who is expected to begin his new role as chief executive of the LGFA in early-August this year, is currently treasurer at Auckland Council and has already served on both the establishment board and the board of directors of the LGFA.