News
Late in the day on 3 February, Columbus Capital began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, Triton 2021-1. Total indicative volume for the transaction is A$500 million (US$380.4 million), with the ability to increase to A$1.3 billion, and is expected to launch in the week beginning 8 February.
The Kauri market opened for 2021 in the final week of January with two transactions – a tap from Kommunalbanken Norway (KBN) followed by a new line from Asian Development Bank. Both came at tenor longer than the New Zealand market’s traditional five-year sweet spot and intermediaries say there is plenty of local demand, but relative pricing remains challenging for further supply.
On 3 February, International Finance Corporation (IFC) (AAA/Aaa) launched a A$20 million (US$15.2 million) minimum increase of its Kangaroo, April 2035, social bond. The forthcoming deal has indicative price guidance of 34 basis points area over semi-quarterly swap, equivalent to 34.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager Mizuho Securities.
New South Wales Treasury Corporation (TCorp) (AA+/Aaa) launched a syndicated increase of its March 2033 line on 3 February. The forthcoming deal is being marketed at 45-48 basis points area over the 10-year futures contract, equivalent to 35-38 basis points area over Australian Commonwealth government bond.
On 3 February, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched its new NZ$2-4 billion (US$1.4-2.9 billion) May 2026 nominal bond via syndication. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 14-18 basis points area over April 2025 New Zealand Government Bond.
ANZ’s latest tier-two deal – a euro-denominated transaction priced on 27 January – is the fourth under its UN sustainable development goals (SDG) framework. The issuer says programmatic issuance and investor engagement has paid off, including in the form of a “greenium” pricing benefit.
The Reserve Bank of Australia (RBA) will add A$100 billion (US$76.6 billion) to its government bond purchasing programme once the initial A$100 billion programme is completed in April. The reserve bank announced the extension following its 2 February monetary-policy meeting, also confirming that it will continue its run-rate of A$5 billion of purchases per week, split 80-20 per cent between Australian Commonwealth government bond (ACGB)s and semi-government bonds.