News
On 9 March, Liberty Financial (BBB- by S&P) began taking indications of interest for a new four-year, Australian dollar denominated transaction. Offered in either or both fixed- and floating-rate note formats, the potential deal is being marketed at 240-250 basis points area over swap benchmarks. Deutsche Bank, National Australia Bank and Westpac Institutional Bank are leading.
On 9 March, Mirvac Group Finance (A3/A-), the financing entity of Mirvac Group, mandated ANZ and Commonwealth Bank of Australia to arrange an investor call for the same day regarding a potential 8.5-year, Australian dollar denominated transaction, offered in either or both fixed- and floating-rate note formats.
On 8 March, Mercedes-Benz Australia-Pacific (BBB+/A3/BBB+) mandated Commonwealth Bank of Australia, TD Securities and Westpac Institutional Bank for an Australian dollar denominated, three-year EMTN deal.
China’s ban on Australian coal has been one of the largest shocks to the industry in recent months. Nonetheless, Aurizon Operations received strong investor support for its transaction – albeit at a significantly wider price point to its triple-B rated peers.
New Zealand’s government-sector issuers experienced market upheaval as severe as their neighbours in Australia during the height of the COVID-19 crisis in March and April. Intervention from the Reserve Bank of New Zealand (RBNZ) and an enviable pace of economic reopening have improved the outlook, but issuers at a KangaNews-Westpac roundtable in June say plenty of challenges remain to be faced.
Key data and information on 15 high-grade lenders active in Australia and New Zealand, including programme information, funding strategy, debt data and issuer insights.
On 8 March, Eclipx Group launched its auto asset-backed securities (ABS) deal, FP Turbo Series 2021-1. The forthcoming deal has capped volume of A$300 million (US$230.9 million) and is expected to price on or before 10 March. ANZ is arranger, and joint lead manager with Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank.
AusNet Services Holdings printed a euro hybrid deal on 2 March which exceeded demand and pricing expectations. The borrower has a strong presence among euro investors that allowed the focus during execution to be on deal specifics rather than issuer credit – and paved the way for a jumbo book, leads say.
On 8 March, Mercury NZ (BBB+ by S&P) announced plans for a NZ$200-250 million (US$143.4-179.3 million), 5.5-year, green-bond transaction for institutional and retail investors. Full details for the deal are expected to be revealed in the week beginning 15 March. Westpac Banking Corporation New Zealand Branch is arranger and green-bond co-ordinator, as well as joint lead manager with ANZ, Craigs Investment Partners and Forsyth Barr.
As environmental, social and governance issues become ever-more integrated with the credit investment process in Australia, the issue of pricing consequences for strong and weak performers is more relevant than ever. This is no longer just a question for direct emitters but also for companies with business models adjacent to emissions-intensive industries.