News
On June 6, Northern Territory Treasury Corporation (NTTC) (Aa1) priced a new 4.25 per cent coupon September 2021 domestic line. According to KangaNews data NTTCorp priced its previous syndicated issue in April 2013 with a volume of A$325 million (US$312.48 million) and pricing of 129 basis points over Australian government bond.
Australian-origin securitisaion flow continues on June 5 as provisional ratings have been assigned to Credit Union Australia (CUA)'s forthcoming residential mortgage-backed securities (RMBS) issue. The move follows provisional ratings assigned to FirstMac's forthcoming RMBS issue earlier this week.
Australian-origin securitisation flow continues as provisional ratings have been assigned to FirstMac's forthcoming residential mortgage-backed securities issue, its first in 2013.
Deal flow in the Australian market remained steady for the final week in May with six deals from a mixture of domestic and Kangaroo borrowers. In the ratings world, new insurance criteria put in place by Standard & Poor's saw a full-spectrum sweep of Australia's insurers.
The International Monetary Fund (IMF) recently published the results of a survey of the currency allocation plans of a swathe of global reserve managers. The results make happy reading for Australian dollar borrowers, indicating that the currency remains close to the top of the list of reallocation targets as reserve managers continue to seek additional diversification.
On May 30, Kommunelbanken Norway (KBN) (AAA/Aaa) priced a new December 2017 Kauri line. According to KangaNews data, KBN priced its previous Kauri issue in April 2012, a NZ$150 million (US$121.49 million) five-year line with pricing of 88 basis points over New Zealand government bond.
International Finance Corporation (IFC) (AAA/Aaa) priced a new five-year Kangaroo deal on May 29, in its first deal in the Australian market this year. IFC's previous Kangaroo deal, which priced in November 2012, was a five-year tap for volume of A$350 million (US$334.6 million) and pricing of 70.75 basis points over Australian government bond.
On May 29, Treasury Corporation of Victoria (TCV) (AAA/Aaa) priced a new December 2032 bond, which the issuer intends "to be increased to benchmark size over time". The new issue meets TCV's strategic commitment, updated following the May 8 Victorian state budget, to "continue to seek opportunities to extend the duration of our debt maturity profile".
On May 28, Australia Pacific Airports Melbourne (Melbourne Airport) (A/A3) priced a new deal in the domestic market. The deal is be the issuer's first transaction in the Australian market since August 2010, when it priced aA$350 million, two-tranche deal. According to KangaNews data its next public bond maturity is A$100 million of August 2014 paper issued as part of that most recent domestic deal.
On May 28, Korea Finance Corporation (KoFC) (A+/Aa3/AA-) priced a new four-year Kangaroo issue – its second deal in Australia. The announcement follows the borrower's series of Australian investor updates on May 6, during which it flagged plans to make good on its intention to become a regular Kangaroo issuer.
Kangaroo market participants ascribe the recent flurry of supranational, sovereign and agency (SSA) Kangaroo issuance to a global tightening of spreads and rolling interest in maturities. While a tapering off of issuance during the European summer is expected, most market participants believe fundamentals remain sound – despite the recent precipitous decline in the value of the Australian dollar.