News
Developing a product that would work in the Australian dollar market was a stated goal of NRW.BANK when it put together its social-bond programme. In the wake of the issuer’s Kangaroo social-bond debut, its Düsseldorf-based head of investor relations, Frank Richter, discusses delivery of a new programme under pandemic conditions, Australian domestic investor engagement and Kangaroo pricing.
On 30 March, Volkswagen Financial Services Australia (Volkswagen Australia) (BBB+/A3) launched a domestic benchmark transaction. Offered in either or both three- and five-year tenors, indicative price guidance for the deal is 95 and 120 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to lead managers ANZ, HSBC and MUFG Securities.
Late in the day on 29 March, Liberty Financial launched a new residential mortgage-backed securities (RMBS) deal, Liberty Prime Series 2021-1. The capped A$1 billion (US$763.5 million) transaction is expected to price no later than 1 April. National Australia Bank is arranger and joint lead manager alongside BofA Securities, Commonwealth Bank of Australia, Deutsche Bank and Westpac Institutional Bank.
On 29 March, Kāinga Ora – Homes and Communities provided an update on the New Zealand government’s recent announcement to allow the agency to borrow an extra NZ$2 billion (US$1.4 billion) to boost housing supply. The agency confirms the additional funding will come from the debt market but also clarifies that it will be done so over 10 years and that the figure is gross of offsets from land sales.
On 29 March, Zip Co launched its asset-backed securities (ABS) deal, Zip Master Trust Series 2021-1. Indicative volume for the deal is A$350 million (US$267.4 million), with the ability to upsize, and is expected to price on 31 March. National Australia Bank is arranger and lead manager.
On 29 March, Defence Bank launched its residential mortgage-backed securities (RMBS) deal, Salute Series 2021-1. Indicative total volume for the transaction is A$300 million (US$229.1 million) and is expected to price on 31 March. ANZ is arranger and lead manager.
On 29 March, Volkswagen Financial Services Australia (Volkswagen Australia) (BBB+/A3) began taking indications of interest for a potential domestic benchmark transaction. Offered in either or both three- and five-year tenors, initial price guidance for the deal is 95 and 120 basis points area over semi-quarterly swap. ANZ, HSBC and MUFG Securities are leading.
WestConnex Finance Company and Lendlease Group completed 10-year domestic prints in the same week even though the tenor of Australian corporate issuance had shortened in the preceding period. Deal sources say borrowers and transaction specifics helped convince investors to consider longer duration despite growing reflation considerations.
Australian market deal flow continued strongly in the final full week of March, with highlights including a debut transaction from WestConnex, Lendlease's second green bond and further labelled supply from the supranational, sovereign and agency sector.
Tasmanian Public Finance Corporation and Northern Territory Treasury Corporation issued new 2032 benchmark lines within days of each other. The issuers say market conditions have stabilised after almost a month of rates volatility, allowing for their sizeable prints.
The US private placement market has long been a happy home for Australasian issuers. The annual USPP roundtable hosted by KangaNews and MUFG found that lower issuance in 2020 had nothing to do with lack of support from the investor base and that hopes remain high for future primary supply. USPP investors also share perspectives on the rapid growth in significance of environmental, social and governance analysis in their market.