News
Telstra Corporation (Telstra) says its latest domestic benchmark bond issue, which priced for A$500 million (US$473.4 million) on November 8, attracted strong support from domestic and international investors despite its five-year tenor. Australia's corporate bond market has tended to focus on seven-year deals in the second half of 2013 as investors seek higher yield.
The first full week in November saw Australian domestic and Kangaroo deal flow continue at a steady pace. Telstra Corporation priced the most significant deal of the week in what was the firm's first transaction of the year and its second benchmark-sized AUD deal since 2005.
Telstra Corporation (Telstra) (A/A2/A) priced a new five-year Australian dollar transaction on November 8, in what is the firm's first domestic transaction of the year and just its second benchmark-sized AUD deal since 2005. The firm has had a more positive outlook on the Australian dollar market in recent times, having completed its largest-ever deal in the market – for A$750 million (US$714.6 million) – in November 2012.
Two new deals from KfW Bankengruppe (KfW) and Inter-American Development Bank (IADB) priced this week, joining a recent run of supranational, sovereign and agency (SSA) Kangaroo issuance. Market participants say strong demand and a conducive basis swap is keeping deal flow steady, although lower funding requirements and repeat issuance from a number of borrowers will likely keep volume moderate for the rest of 2013.
Liberty Financial (Liberty) has priced its first Australian auto-based asset-backed securities (ABS) transaction of 2013 on November 7. Liberty Series 2013-1 Auto Trust (Liberty 2013-1) has a five-tranche structure with an total volume of A$150 million (US$142.1 million).
Bank of China Sydney Branch (BoC Sydney) (A/A1/A) priced its third Australian dollar domestic benchmark transaction – and its second of 2013 – on November 7. According to KangaNews data, both the issuer's previous transactions were for A$600 million (US$569.8 million) of three-year, floating-rate paper with the most recent pricing in March this year at 98 basis points over bank bills.
Export Development Canada (EDC) (AAA/Aaa) priced an increase of its 3.5 per cent February 2018 Kauri line on November 7. According to KangaNews data the tap is the second increase of the line which was introduced in February 2013 at a volume of NZ$350 million (US$292.6 million) and pricing of 62.5 basis points over New Zealand government bond (NZGB). NZ$150 million was added to the line later in April with pricing of 82.5 basis points over NZGB.
On November 7, Bendigo and Adelaide Bank (BEN) (A-/A2/A-) priced a new five-year floating-rate note domestic transaction. According to KangaNews the issuer's previous domestic deal priced in May 2013 at a volume of A$600 million (US$569.9 million) and pricing of 120 basis points over bank bill swap rate.
MyState returned to the residential mortgage-backed securities (RMBS) market after a three-year break on November 1. The issuer says strong demand and the success of its merger with The Rock Building Society (The Rock), in December 2011, presented the borrower an opportunity to return with a new deal.