News
Macquarie Group has strongly denied a newspaper report in Australia saying it is likely to struggle to meet its refinancing requirements over the next six months. The bank claims in an Australian Securities Exchange (ASX) announcement that the claims are inaccurate and were made without giving Macquarie right of reply.
Lehman Brothers’ Kangaroo bond was removed from UBS indices in Australia on September 17 following Standard & Poor’s downgrading of the issuing entity, Lehman Brothers Treasury, to D. This is the first example of a Kangaroo bond entering default.
The financial institutions (FIs) closest to the most recent wave of market turmoil have just short of A$10 billion (US$8.01 billion) outstanding in the Kangaroo market with almost A$7 billion also borrowed by HBOS through its Bank of Scotland Australia subsidiary.
Queensland Treasury Corporation (AAA/Aaa/AAA) (QTC) priced a NZ$175 million (US$114.56 million) increase to its 2017 Kauri bond on September 12. However, a negative trend in the New Zealand basis continues to make conditions difficult for offshore issuers outside Australia.
Kommunalbanken Norway (AAA/Aaa) (KBN) will be roadshowing in Australia and New Zealand the week beginning September 22. Thomas Møller, executive vice president and chief financial officer at KBN in Oslo, confirms that RBC Capital Markets will be hosting the Australian leg of the roadshow, while ANZ is arranging the meetings in New Zealand.
Two of the three Australian banks with offshore-based bond originators have made changes to their teams in the last few months, meaning that by the start of 2009 National Australia Bank (NAB) will be the only Australian bank with a full-time originator based in New York.
ASB Bank (AA/Aa2) (ASB) priced NZ$270 million (US$179.12 million) of six-year bonds on September 9 having increased the deal’s volume from NZ$50 million since its September 1 launch, with market sources saying retail demand continues to drive transactions from New Zealand banks.
Westpac New Zealand (AA/Aa2) (Westpac) launched a new five-year self-led domestic transaction on September 8, with the bank confident of capturing a combined retail and institutional investor base for the fixed rate deal.
Data released by the Australian Office of Financial Management (AOFM) indicates the agency is starting to act on its new investment mandate, investing in both semi-government and Kangaroo securities since the mandate's July 22 announcement.
The convertible preference share offer announced by ANZ Banking Group (ANZ) on August 27 has had its margin set and initial size announed, with the bank doubling its earliest volume projections and pricing at the tightest end of its indicative range, 250 basis points over BBSW.
St.George Bank (A+/Aa2/A+) (St.George) says it does not expect to return to the term funding markets in the near term after selling A$1 billion (US$849.7 million) of RMBS securities under its Crusade securitisation programme in a private placement on September 1.
August brought mixed messages in the hybrid market, with ANZ Banking Group (ANZ) launching a convertible preference share (CPS) offer while National Australia Bank (NAB) elected to convert the A$600 million (US$514 million) of T1 notes it issued in a private placement to Deutsche Bank in December last year.