News
On March 5, LeasePlan Australia (BBB+/Baa2/A-) mandated and priced a new transaction in the Australian market for A$175 million (US$156.7 million). The three-year deal is the issuer's first in the Australian market since February 2011.
As was widely predicted by analysts, the policy signal from the Reserve Bank of Australia (RBA) remained on a clear neutral bias after the RBA left the cash rate on hold – at 2.5 per cent – at its March monetary policy meeting. Both data and analysts points to economic transition being under way.
On March 4, SGSP Australia Assets (SGSP) (BBB+/Baa1) priced a new AUD-denominated issue of senior-unsecured seven-year bonds.
National Australia Bank (NAB) (AA-/Aa2) priced a new 10-year fixed-rate, self-led covered bond issue in the Australian market on March 4. Despite having accessed the covered market offshore, this is NAB's debut issuance of covered bonds in its domestic currency.
New Zealand's bond market started the year on the front foot and its participants are bullish on the prospects for future supply. The most eye-catching deal to date has come from Fonterra Co-operative Group (Fonterra) which, despite the likely limited opportunities for other issuers to replicate the trans-Tasman transaction, is hailed by bankers for its innovative approach to maximising competitive tension in the New Zealand domestic market.
Australian issuers are readying their first forays into the US dollar securitisation market of 2014 with two transactions – one of asset-backed securities (ABS) and one of residential mortgage-backed securities (RMBS) – in the market at the start of March. Macquarie Leasing and Resimac, the two borrowers involved, were responsible for nearly US$1.8 billion of the US$2.1 billion of US dollar securitisation priced by Australian issuers in 2013.
G8 Education (G8) (NR) closed its four-year duration floating-rate note (FRN) unsecured bond offer on March 3. After raising an oversubscription from the market according to the deal's arranger, the transaction's final volume is A$50 million (US$44.5 million), the borrower's maximum size requirement. Bonds were priced in line with the indicative margin of 390 basis points over bank bills.
On February 28, Nordic Investment Bank (NIB) (AAA/Aaa) priced an increase of its January 2019 Kauri line. According to KangaNews data, the line was introduced in January this year at a volume of NZ$425 million (US$353.7 million) and pricing of 70 basis points over New Zealand government bond.
The last week of February saw activity continuing at a strong and steady pace across the Australian and New Zealand markets. Improving demand for New Zealand dollars is driving the rejuvenated Kauri market while the AOFM sold the bulk of its holdings in AB notes after BEN achieved a robust bid for its RMBS mezzanine tranche.