News
On 9 February, European Investment Bank (EIB) (AAA/Aaa/AAA) launched a new 15-year, A$150 million (US$115.7 million) minimum, climate-awareness bond (CAB), Kangaroo transaction. Indicative price guidance for the deal is 34 basis points area over semi-quarterly swap, equivalent to 35.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager Nomura.
Defence Bank (BBB/Baa1) launched its new 10-year non-call five-year (10NC5), A$15 million (US$11.6 million), subordinated, floating-rate note transaction on 9 February. The forthcoming deal, which is expected to price on the day of launch, is being marketed at 325-350 basis points area over three-month bank bills. National Australia Bank is leading.
On 9 February, Arvida Group launched a new seven-year, NZ$75-125 million (US$51.2-90.3 million), retail bond. Indicative price guidance for the forthcoming deal, which is expected to price on 12 February, is 180-200 basis points area over mid-swap. ANZ is arranger and joint lead manager alongside Craigs Investment Partners, Forsyth Barr and Jarden Securities.
New Zealand Debt Management (NZDM)’s latest mid-curve syndication came shortly after a labour market data print that shocked the market on the up side, leading to a bond-market sell-off. Despite recovery-driven headwinds, NZDM says issuance conditions were relatively conducive and supported a good deal outcome.
On 8 February, Columbus Capital launched its residential mortgage-backed securities (RMBS) deal, Triton 2021-1. Total indicative volume for the transaction is A$500 million (US$383.7 million), with the potential to upsize to A$1.5 billion, and is expected to price on 10 February. National Australia Bank is arranger and lead manager alongside Natixis, Standard Chartered and Westpac Institutional Bank.
On 8 February, South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a new May 2034, A$1 billion (US$767.2 million) capped, syndicated transaction. The forthcoming deal is being marketed at 64-66 basis points area over the 10-year futures contract, equivalent to 53.25-55.25 basis points area over Australian Commonwealth government bond.
On 8 February, Defence Bank (BBB/Baa1) revealed plans for a 10-year non-call five-year (10NC5), subordinated, Australian dollar denominated transaction. National Australia Bank has been mandated to organise a fixed-income investor update on the day of the announcement. The transaction is expected to be rated Baa3.
Australasian debt markets witnessed issuance exclusively from the high-grade sector in the first week of February. New Zealand Debt Management executed its first syndication for 2021, while New South Wales Treasury Corporation tapped one of its lines. Meanwhile, the winners of the 2020 KangaNews institution and deal awards were announced.
KangaNews is proud to announce the winners of the institutional and deal categories in the KangaNews Awards 2020. At the end of a tumultuous year in the Australian and New Zealand capital markets, KangaNews received votes from hundreds of market participants keen to recognise the achievements of 2020's most outstanding performers.
The 25-year deal Province of Alberta priced on 3 February is the longest-ever tenor issued in the Kangaroo supranational, sovereign and agency (SSA) market, according to KangaNews data. The transaction’s lead manager, Daiwa Capital Markets, says it is a sign of the ongoing desire for longer tenor particularly among offshore investors, but warns that consistent execution of very long-dated Kangaroos remains challenging.