News
On 14 September, World Bank (AAA/Aaa) launched a new seven-year, NZ$150 million (US$100.3 million) minimum, Kauri transaction. Indicative price guidance for the forthcoming deal is 36 basis points area over mid-swap, equivalent to 44.4 basis points area over New Zealand government bond. Pricing is expected on the day after launch, according to lead managers ANZ, BNZ and TD Securities.
On 14 September, Auckland Council (AA/Aa2) announced plans for a domestic, secured, green-bond deal. The transaction is expected to have a term of 30 years and will be led by ANZ, BNZ and Westpac Banking Corporation New Zealand Branch. Full details of the deal will be released on 15 September.
Adam Moore, director, head of funding and securitisation at Brighten Home Loans in Sydney, discusses the market entrant’s funding journey so far and plans for public securitisation issuance.
The second week of September was relatively subdued in Australasian markets compared with recent deal flow. Nonetheless, highlights included HSBC Bank Australia's rare residential mortgage-backed securities transaction, and the continuation of corporate deal flow in New Zealand.
Every year, KangaNews and RBC Capital Markets host the heads of funding from Australia’s big-four banks to discuss market conditions and the outlook for their sector. In 2020, the COVID-19 crisis has reshaped the landscape completely – most notably by almost completely eliminating the majors’ funding gap and thus removing them from public senior debt markets since the first months of the year.
Kāinga Ora – Homes and Communities (Kāinga Ora) held its inaugural virtual investor day on 19 August to showcase its role as a world-class public-housing landlord and leader in delivering urban-development projects. The goal was to explain the agency’s role to debt investors beyond the normal tenets of its funding programme.
New Zealand market participants gathered virtually on 20 August for the ANZ-KangaNews New Zealand Capital Markets Forum (NZCMF). New Zealand’s economy, politics and COVID-19 response are setting the market’s parameters, and discussion focused on managing through and beyond the current rocky patch.
Asian demand has been a consistent component of the Australian dollar credit market in recent years and – to the surprise of some – has emerged from the first phase of the COVID-19 crisis as a still-reliable bid. Yield and credit quality factors are crucial, as the relative stability Australian credit offers attracts consistent demand.
On 10 September, Perenti (BB/Ba2) revealed it would not go ahead with the five-year non-call two-year, Australian dollar deal it mandated on 7 September. In a statement posted to the Australian Securities Exchange, the company reveals committed volume was below its target of A$200 million (US$146.4 million).