News
On 17 December, International Finance Corporation (IFC) (AAA/Aaa) launched a A$25 million (US$19 million) minimum increase to its February 2031 Kangaroo line. Indicative price guidance for the forthcoming deal is 30 basis points area over semi-quarterly swap, equivalent to 28.4 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager TD Securities.
On 16 December, New Zealand Debt Management (NZDM) revealed a NZ$5 billion decrease (US$3.5 billion) to its 2020/21 financial year borrowing requirement, following the New Zealand Treasury’s half-year economic and fiscal update. The reduction means gross New Zealand government bond (NZGB) issuance in 2020/21 is expected to be NZ$45 billion.
Along with travel and tourism, Australian universities have been one of the hardest hit sectors from COVID-19. But as a clearer picture of the industry’s outlook emerges, investors were comfortable to participate in domestic deals from Western Sydney University (WSU) and University of Wollongong (UOW).
The Green Bond Principles and Social Bond Principles (GBP SBP), administered by the International Capital Market Association, launched its Climate Transition Finance Handbook on 9 December. The handbook marks a new phase in the evolution of the sustainable finance market according to market participants involved in its development.
The Australian Office of Financial Management (AOFM) is purchasing structured finance securities through the structured finance support fund (SFSF) to promote the smooth functioning of the Australian securitisation market. KangaNews will provide subscribers with easy access to SFSF investments in primary, secondary and warehouse facilities as information is made available by the AOFM.
NBN Co says the two domestic benchmark deals it issued in November and December provide good foundations for an expected increased call on public capital markets. The government-owned corporation says it will be an active issuer going forward, with offshore markets also on the cards.
Australasian public market deal flow continued in the second week of December, in the run up to year end. New South Wales Treasury Corporation printed a new February 2032 line via syndication, one day after S&P Global Ratings downgraded the state's rating, and nearly A$2 billion (US$1.5 billion) was priced across three securitisation deals.
On 11 December, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$75 million (US$56.7 million) increase to its 2035 Kangaroo social bond, via Daiwa Capital Markets. The forthcoming deal has indicative price guidance of 34 basis points area over semi-quarterly swap and 27 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
