News
At A$3 billion (US$2.3 billion), Queensland Treasury Corporation (QTC)’s latest deal is the largest syndicated transaction from a semi-government borrower in a decade. The issuer says recent primary-market transactions in the government space suggested a receptive backdrop for new issuance following volatility in secondary markets earlier in the year.
On 1 February, South Australian Government Financing Authority (SAFA) (AA+/Aa1) revealed plans for a new A$1 billion (US$762.4 million) maximum, May 2034, syndicated deal expected to launch in the first half of February. BofA Securities, Commonwealth Bank of Australia, National Australia Bank and UBS are leading.
The final week of January saw only a handful of deals in Australasian markets. Kommunalbanken Norway reopened the Kauri market for 2021 with Asian Development Bank following suit shortly afterwards, while Queensland Treasury Corporation printed the sole debt capital markets transaction in Australia.
Columbus Capital revealed plans for a potential Australian dollar denominated, residential mortgage-backed securities (RMBS) transaction from its Triton programme on 28 January. National Australia Bank, Natixis, Standard Chartered and Westpac Institutional Bank have been mandated to engage investors.
On 28 January, Queensland Treasury Corporation (QTC) (AA+/Aa1/AA) launched a new August 2032, Australian dollar denominated, syndicated, benchmark transaction. Indicative price guidance for the forthcoming deal is 40-43 basis points area over 10-year futures contract, equivalent to 32.2-35.2 basis points area over Australian Commonwealth government bond.
Westpac Banking Corporation’s latest tier-two transaction, priced on 21 January, opened the Australian dollar financial-institution (FI) market for 2021. The issuer says lack of major-bank supply coupled with the liquidity environment is supporting broad-based demand for its tier-two transactions.
Arvida Group, an owner, operator and developer of retirement villages in New Zealand, revealed plans on 28 January for a NZ$75-125 million (US$53.7-89.4 million) seven-year retail bond. The transaction is expected to open on 9 February, with a rate set date on 12 February. ANZ is arranger and joint lead manager with Craigs Investment Partners, Forsyth Barr and Jarden Securities. The deal is the first New Zealand dollar corporate transaction announced for 2021.
On 28 January, New Zealand Debt Management appointed Commonwealth Bank of Australia, Deutsche Bank, UBS and Westpac Banking Corporation New Zealand Branch as lead managers for the syndication of a new nominal bond maturing in May 2026. The transaction is expected to launch in the week beginning 1 February and is capped at NZ$4 billion (US$2.9 billion).
On 28 January, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new, seven-year Kauri bond line, with minimum volume of NZ$300 million (US$214.6 million). The forthcoming deal is being marketed at 24 basis points area over mid swap, equal to 34.4 basis points area over New Zealand government bond. Pricing is expected on the day after launch according to lead managers ANZ, Commonwealth Bank of Australia and TD Securities.