News
On 27 January, Queensland Treasury Corporation (QTC) (AA+/Aa1) revealed plans for a new August 2032, Australian dollar denominated, syndicated, benchmark transaction. ANZ, Citi and Commonwealth Bank of Australia are leading.
The third week of January in the Australian dollar market saw Westpac Banking Corporation kick off financial institution issuance for the year with a 10-year non-call five-year, tier-two print, while Treasury Corporation of Victoria executed 2021's first semi-government borrower syndication.
On 22 January, Kommunalbanken Norway (KBN) (AAA/Aaa) launched a A$25 million (US$19.4 million) minimum increase to its December 2030 Kangaroo line. Indicative price guidance for the deal is 33 basis points area over semi-quarterly swap, equivalent to 31.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager TD Securities.
Asian Development Bank (ADB) and European Investment Bank (EIB) delivered mid-January Kangaroo deals at a tenor – 10 years – that had been missing in the new-issuance market. Deal sources say Australian dollar pricing relative to core currency markets is still too wide to encourage more widespread sovereign, supranational and agency (SSA) issuance.
On 21 January, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched a new 7.5-year, A$300 million (US$232.7 million) minimum, Kangaroo transaction. Indicative price guidance for the forthcoming deal is 24 basis points area over semi-quarterly swap, equivalent to 27.75 basis points area over Australian Commonwealth government bond.
Australian Unity issued Australia’s first-ever mutual capital instrument (MCI) on 24 December 2020. The A$120 million (US$93 million) perpetual security came nearly two years after enabling legislation passed in federal parliament. Adam Vise, the issuer’s Melbourne-based group treasurer, discusses the impetus for and mechanics of the transaction.
Treasury Corporation of Victoria (TCV) stepped into a quiet Australian dollar market with a new four-year syndication on 20 January. The issuer says secondary market selling that dominated market tone early in the year appears to have cleared and that issuance conditions supported a substantial book and final volume.