News
Taken alone, quarterly issuance patterns from recent years suggest there is no reason to expect a wholesale drop-off in new deals from 2008’s most significant sectors of borrowers in Australia – major local financial institutions and top-rated offshore names.
International Finance Corporation (AAA/Aaa) (IFC) issued in Australia for the second time this year on June 20, bringing a A$500 million (US$475.8 million) increase to its only outstanding Kangaroo line, the 2013, behind strong domestic and offshore demand for its name.
After taking sole lead manager position on its own A$1.75 billion (US$1.66 billion) domestic deal, Commonwealth Bank of Australia (CommBank) has taken top spot in KangaNews's domestic league table when self-led deals are included. CommBank is now more than A$1 billion of issuance clear of its nearest rival, nabCapital.
Westpac Banking Corporation (Westpac)’s forthcoming tier one issue is a floating rate, franked deal, which the issuer acknowledges will place it even more firmly in the retail realm. The issue has an indicative size of A$600 million (US$567.5 million) though Westpac is open to the possibility of upsizing that amount.
On June 18 World Bank (AAA/Aaa) announced it is selling a four-year retail bond in New Zealand, via Westpac Institutional Bank (Westpac) – the first deal from a supranational issuer to be offered predominantly for retail participation in the country.
Commonwealth Bank of Australia (AA/Aa1/AA) priced a jumbo A$1.75 billion (US$1.65 billion) 2011 domestic bond on June 18, illustrating the demand for Australian bank paper that has also allowed St.George Bank (A+/Aa2/A+) (St.George) to complete its annual funding three months ahead of schedule.
Suncorp Metway (A+/Aa3) (Suncorp) reopened the Australian domestic market on June 18, pricing a A$300 million (US$283.38 million) increase to the floating tranche of the 2011 maturity fixed and floating bond it initially brought to market on May 21 this year.
Bank of New Zealand (BNZ) and nabCapital are to commemorate past and future Kauri bond issues through the planting of the iconic native tree in the North Island of New Zealand, to create the BNZ Kauri Forest.
A June 17 report from Moody's Investors Services (Moody's) has highlighted negative trends in the Australian housing market, but mixed sentiment has not prevented Macquarie Group from pricing both a low-doc RMBS and an auto loan-backed transaction earlier this month, the latter upsized by over A$500 million (US$471 million).
ANZ and Westpac Banking Corporation (Westpac) have seen an exchange of staff in New Zealand with two debt markets executives crossing the floor between the two firms. Westpac will have a new head of debt and hybrid securities in Auckland as Nick Howell joins the bank from his former position at ANZ in London.
In just under a year of activity, the SSA Kauri market offers a much greater range of issuers and maturities than the equivalent stage in Kangaroo development. KangaNews data shows the NZ$6.475 billion (US$4.86 billion) total outstanding forms a curve clustered around two- to five-year maturities but with issuance as long dated as 2018.
With minimal deal activity on both sides of the Tasman Sea, the Kauri market produced greater volume than either the Kangaroo or Australian domestic businesses. Bank of New Zealand and TD Securities (TD) shared the top line of this week's new Kauri transaction but volume was not enough to dislodge ANZ from the top of the league table.