News
After taking indications of interest earlier in the day, ALE Direct Property (Baa2), a subsidiary of ALE property group, launched a new A$150 million (US$116 million) capped, August 2024, floating-rate note (FRN), benchmark transaction on 17 March. Indicative price guidance for the forthcoming deal is 210 basis points area over semi-quarterly swap.
On 17 March, Stockland Trust Management, the responsible entity for Stockland Trust (A-/A3), launched a domestic, seven-year, benchmark deal with indicative price guidance of 120-125 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to lead managers Commonwealth Bank of Australia and Westpac Institutional Bank.
BWP Management, the responsible entity for BWP Trust (A-/A3), launched a A$100 million (US$77.4 million), seven-year transaction on 17 March. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 100-105 basis points area over semi-quarterly swap. SMBC Nikko and Westpac Institutional Bank are leading.
On 17 March, ALE Direct Property Trust (Baa2), a subsidiary of ALE Property Group, began taking indications of interest for a new domestic, benchmark, floating-rate note (FRN) transaction maturing in August 2024. Initial price guidance is 220-230 basis points area over three-month bank bills.
Late in the day on 15 March, KfW Bankengruppe (AAA/Aaa/AAA) launched a minimum A$250 million (US$193.9 million) increase to its July 2024 Kangaroo green bond. The forthcoming deal is being marketed at 12 basis points area over semi-quarterly swap, equivalent to 45.5 basis points area over Australian Commonwealth government bond. Pricing is expected on 16 March according to lead managers RBC Capital Markets and TD Securities.
Australia’s national modern-slavery reporting deadline is looming, on 31 March 2021. There are capital-market consequences, most notably that buy-side firms are taking steps to ensure they have appropriate modern-slavery risk controls in place.
Late in the day on 15 March, Verizon Communications (BBB+/Baa1/A-) launched a 20-year tranche as part of its Kangaroo benchmark transaction, with seven- and 10-year tenors, announced earlier in the day. The 20-year tranche has an indicative price guidance of 175 basis points area over semi-quarterly swap and is expected to price, along with the other tenors, on the day after launch. Deutsche Bank, J.P. Morgan and Mizuho Securities are leading.
Treasury Corporation of Victoria (TCV) (AA/Aa1) revealed on 15 March that it expects to raise approximately A$4 billion (US$3.1 billion) prior to the release of the Victorian state budget in mid-May 2021. This includes proceeding with its planned new long-dated syndication – provided market conditions are conducive.