News
The third week of July saw deal flow continue in Australia and New Zealand with four new transactions. Perth Airport reopened the domestic corporate market with a debut unwrapped deal, the first corporate transaction since Australia Airports Melbourne (Melbourne Airport) priced a seven-year deal on May 28.
On July 16 Perth Airport (BBB/Baa2) reopened the domestic corporate bond market with its first ever unwrapped domestic bond issue, the first corporate transaction since Australia Pacific Airports Melbourne (Melbourne Airport) priced a seven-year deal on May 28. Joint lead managers on the deal say the pipeline for further issuance looks positive, with strong support for Australian dollar credit.
On July 18, following the successful completion of the bookbuild for its proposed offer of Subordinated Notes II, Westpac Banking Corporation (Westpac) has announced the margin and increased the offer size.
SP AusNet priced its debut euro-denominated issuance on July 11 after undertaking an Asian and European roadshow several weeks prior. Launching under the auspices of the SPI Electricity & Gas Holdings (A-/A1) subsidiary, the new €500 million (US$653.85 million) seven-year notes priced at a margin of 95 basis points over mid-swaps, the tight end of 95-100 basis points guidance.
ASB Bank (AA-/Aa3/AA-) priced its inaugural offering of the year to date in the New Zealand domestic market on July 16. Execution of the five-year notes has been timed to capture upcoming redemptions, although ASB Bank has also drawn comfort from Westpac New Zealand (Westpac)'s recent transaction.
On July 16, Perth Airport (BBB/Baa2) priced a new A$150 million (US$137.71 million) seven-year deal in the Australian market. This is the first corporate transaction since Australia Pacific Airports Melbourne (Melbourne Airport) priced a seven-year deal on May 28.
The non-resources sectors of the Australian economy will not compensate for the substantial negative impact on corporate capital expenditure of the end of the mining investment boom, a report from Standard & Poor's (S&P) suggests. However, economists believe rate cuts by the Reserve Bank of Australia (RBA) have begun to produce shoots of improvement in non-mining sectors.
ASB Bank priced a new NZ$525 million (US$478.66 million) five-year dual-tranche senior unsecured fixed and floating rate notes issue on July 16 2013. The self-led transaction was upsized from a minimum volume of NZ$200 million.
Deal flow in Australia and New Zealand resumed during the second week in July, with three transactions pricing. Most notably, Westpac New Zealand reopened the New Zealand domestic market with an upsized three-year floating rate note – the first public bond issue in the market since June 7 and the first public issue by a big four bank since late-March.
ASB Bank (AA-/Aa3/AA-) launched its debut 2013 offering in the New Zealand domestic market on July 11, hard on the heels of Westpac New Zealand's three-year floating rate note (FRN) which priced at 75 basis points over bank bills on July 9. The new self-led transaction for ASB Bank is divided between fixed- and floating-rate pieces, with the borrower venturing further out the curve than its domestic peer – indicative pricing for the five-year transaction is at 110-115 basis points over swap.
Following the May 30 announcement that it is modifying the terms of its Capital Bonds, on July 10 Genesis Energy (Genesis) confirmed the new the interest rate and margin. Until the first reset date – now July 15 2018 – the interest rate will be 6.19 per cent, having been offered at the higher of 5.8 per cent per year 215 basis points over five-year swap.