News
Three corporate bonds came to the Australian domestic market in the week ending June 22, accompanied by a large-volume domestic tap by a big four bank and a Kangaroo from Nordic Investment Bank - which increased the tap in less than 24 hours. The New Zealand market remained quiet.
Volkswagen Financial Services Australia (VW Australia) priced a new five-year domestic issue for A$150 million (US$150.4 million). It is the second deal of 2012 for VW Australia after a February top-up to its January 2015 line, which priced a A$150 million transaction at 155 basis points over mid-swap.
National Wealth Management Holdings (National Wealth) (A+) returns to the domestic market with a A$120 million top-up to its August 2015 floating rate notes. The deal was twice oversubscribed and closed in an hour, mostly taken up by funds and middle market accounts. Mark Abrahams, director of debt syndicate at sole lead National Australia Bank, says National Wealth is well funded, and has not needed to approach the market since the 2015 line was last tapped in November 2010.
ANZ Wealth Australia (ANZ Wealth) (A+) debuted in the domestic market with a double-tranche of fixed rate and floating rate notes that drew mainly domestic investors. Approximately 75 per cent of the deal was invested locally with domestic asset managers as the biggest buyer. Private banks in Asia also provided a portion of participation with a take-up around 20 per cent.
Still troubled by European setbacks, Seek decided to pull its retail bond offer and the Australian market saw just one domestic transaction - from debut issuer ANZ Wealth - and one Kangaroo price late in the week. One deal priced across the Tasman as well, and New Zealand is expecting a rare asset-backed security after its launch this week.
KangaNews is pleased to announce the best performers in its second annual Fixed Income Research Survey, in which Australian investors were asked to recognise the performance of fixed income research across nine categories. Around 50 investment firms participated in the survey, representing the bulk of major institutional investment funds in the Australian market across the fund management, insurance and balance sheet sectors.
KfW Bankengruppe (AAA/Aaa/AAA) has launched its seventh Kangaroo transaction of the year with a tap to the 5.5 per cent February 2022 bond. The German development bank's last Kangaroo was a A$450 million (US$447.3 million) tap to its 5.75 per cent 2015 bond. The new notes will add to the A$750 million outstanding in the line and A$21.2 billion total outstanding in 12 maturities. Leads on the top-up are National Australia Bank and TD Securities.