News
In a speech discussing implementation of the 18th National Congress of the Communist Party of China (CPC) – which will set the political agenda for China over the next five years – People's Bank of China (PBoC) governor, Zhou Xiaochuan, highlighted the country's bond market as a target for development. Zhou referred to both the mainland and Hong Kong markets and referred explicitly to the internationalisation of China's financial sector.
ETSA Utilities Finance (ETSA Utilities) (A-/A3) priced a 2017 transaction in the AUD market on November 20, increasing its existing September 2017 fixed-rate line and adding a new October 2017 floating rate note. According to KangaNews data, the new deal marks the first time since 2000 that ETSA Utilities has placed two public Australian dollar issues in a year, following its introduction of the 2017 fixed rate bonds in March.
National Australia Bank (NAB)(AA-/Aa2) priced A$950 million (US$983.85 million) 10-year subordinated floating rate issue on November 21. The transaction, priced at 220 basis points over three-month BBSW, has a traditional 10-year, non-call five structure.
Edinburgh-based Sebastian MacKay, investment director at Standard Life Investments, who is part of a team managing US$2.5 billion of global bonds, talks to KangaNews about Australasian fixed income products and the global economy.
Westpac Banking Corporation (Westpac) closed the buyback offer for its Australian dollar government-guaranteed notes on November 16. Bondholders agreed to retire a total of A$3.37 billion (US$3.50 billion) across the three lines in question, out of a total of A$4.92 billion previously on issue.
This week there was continuing corporate deal activity in the Australian domestic market with Caterpillar returning and ABB Finance Australia debuting, which took November's non-financial corporate supply to an all-time record. There were also two Kangaroo taps from KfW and Rentenbank. In New Zealand, Kiwibank set the margin on its subordinated bond.
Swiss power and automation technology firm ABB (A/A2) priced its first Australian market bond deal on November 15, via fully-guaranteed local subsidiary ABB Finance Australia. The deal closed with final volume of A$400 million (US$414.4 million) – an upsize of A$100 million from launch – and attracted a book of over A$1 billion from more than a hundred accounts, according to its leads.
Caterpillar Financial Australia (Caterpillar) (A) priced its fifth transaction of 2012 in the Australian domestic market, having upsized the new three-and-a-half year deal by A$50 million (US$51.8 million) from launch volume of A$100 million. Caterpillar has now issued A$900 million of bonds in the Australian public market this year.
Caterpillar Financial Australia (Caterpillar) (A) priced its fifth transaction of 2012 in the Australian domestic market, having upsized the new three-and-a-half year deal by A$50 million (US$51.8 million) from launch volume of A$100 million. Caterpillar has now issued A$900 million of bonds in the Australian public market this year.
Swiss power and automation technology firm ABB (A/A2) launched its first Australian market bond deal on November 14, via fully-guaranteed local subsidiary ABB Finance Australia. The five-year transaction has been launched with minimum volume of A$300 million (US$313 million) and an indicative margin of around 120 basis points over semi-quarterly swap.