News
The Australian Office of Financial Management issued its first syndication for calendar year 2021 on 13 April. Despite an improving budget position, the issuer says it was committed to establishing a new 2032 line this financial year.
Rabobank Australia’s return to the domestic market yielded a pricing record in an Australian dollar financial institution market still running hot in the absence of local major-bank supply. But there is evidence from the Rabobank Australia transaction that some investors are becoming increasingly price sensitive.
On 14 April, Northern Territory Treasury Corporation (NTTC) (Aa3) launched a syndicated increase to its November 2042 line. Indicative price guidance for the deal is a yield of 3.25 per cent, equivalent to 78.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager ANZ.
On 14 April, Victoria Power Networks (VPN) (A- by S&P) began taking indications of interest for its new multi-tranche, Australian dollar denominated, benchmark transaction. The five-year fixed- and floating-rate note tranches are being marketed at 85 basis points area over swap benchmarks, while the seven-year tranche has an initial price guidance of 100 basis points area over semi-quarterly swap. Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank are leading.
NSW Electricity Networks Finance, the financing entity of TransGrid (Baa2), began taking indications of interest for a new eight-year, Australian dollar denominated, senior-secured, benchmark transaction on 14 April. The deal is being marketed at 130 basis points area over semi-quarterly swap, according to lead managers ANZ and MUFG Securities.
On 14 April, CHC Finance, the financing entity of Charter Hall Group (Baa1), launched a new A$250 million (US$191.1 million) capped, 10-year, senior-unsecured transaction. Indicative price guidance for the deal, which is expected to price on the day of launch, is 155 basis points area over semi-quarterly swap. Commonwealth Bank of Australia, HSBC and RBC Capital Markets are leading.