News
On 25 May, National Housing Finance and Investment Corporation (NHFIC) (AAA by S&P) revealed plans for a potential 15-year, Australian dollar denominated, benchmark, sustainability bond. ANZ, Commonwealth Bank of Australia, Deutsche Bank, UBS and Westpac Institutional Bank have been mandated to arrange a group investor call on 26 May.
Wisr’s debut unsecured personal loan-backed securitisation transaction attained a triple-A rating for the structure’s senior notes – a rare feat given the sponsor’s relatively short origination track record. Deal sources say investor interest was robust with accounts willing to engage with the asset class’s risk profile.
On 24 May, South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a syndicated increase of up to A$500 million (US$386.5 million) to its existing May 2032 line. Indicative price guidance for the deal is 38-40 basis points area over 10-year futures contract, equivalent to 28.1-30.1 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers ANZ, Deutsche Bank and J.P. Morgan.
SkyCity Entertainment Group has returned to the New Zealand domestic market – for the first time since 2015 – with a new six-year deal. Market tailwinds in the week of execution allowed a favourable margin revision for a borrower that acknowledges COVID-19 disruption but says it is emerging robustly from the pandemic.
The third week of May saw deal flow continue in the New Zealand market with transactions from SkyCity Entertainment Group and Precinct Properties, while Wisr's debut securitisation issuance and prints from financial institutions dominated activity in Australia.
On 21 May, following the release of the New Zealand budget, Kāinga Ora – Homes and Communities announced a NZ$2.3 billion (US$1.7 billion) funding requirement for the 2021/22 financial year. The borrower says this incorporates the government’s announcement earlier this year of an additional NZ$2 billion in funding over 10 years to scale up land acquisitions and boost housing supply.
On 21 May, NBN Co (A1/AA) mandated ANZ, Citi, Commonwealth Bank of Australia and Deutsche Bank as lead managers for a potential new Australian dollar denominated, seven-year, senior-unsecured, benchmark transaction. The deal is anticipated to launch in the week commencing 24 May.
