News
On 24 August, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched a NZ$2-4 billion (US$1.3-2.6 billion) syndicated tap of its April 2027 line. The forthcoming deal is being marketed at 18-22 basis points area over the April 2025 nominal bond. Pricing is expected on the day after launch, according to lead managers ANZ, BNZ, Commonwealth Bank and UBS.
On 24 August, Transpower New Zealand (AA- S&P) launched a new NZ$125-200 million (US$81.7-130.8 million), five-year transaction, offered to institutional and New Zealand retail investors. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 65-72 basis points area over mid-swap. Westpac Banking Corporation New Zealand Branch is lead manager.
Australian market deal activity was vibrant in the third week of August with a litany of tier-two deals from financial institutions and insurance companies, plus two corporate transactions. In New Zealand, the second public corporate bond for the year was issued.
ANZ Banking Group’s capital-markets return, on 19 August, marked the first major-bank domestic tier-two deal since late 2019 and the sector’s first Australian dollar green, social and sustainability (GSS) bond since 2017. It is ANZ’s third transaction under its SDG framework, which aligns use of proceeds with the UN Sustainable Development Goals, having previously only issued in the euro market.
Further to its announcement earlier in the day, the Australia Office of Financial Management (AAA/Aaa/AAA) revealed Citi, Commonwealth Bank of Australia, UBS and Westpac Institutional Bank as joint lead managers for the syndication of a new November 2031 Treasury bond. The deal is expect to launch in the week beginning 24 August.
On 21 August, the Australian Office of Financial Management (AOFM) announced its intention for a new syndicated November 2031 Treasury bond transaction to be issued in the week beginning 24 August.
On 21 August, Suncorp Group (A/A2/A+) mandated Citi, National Australia Bank, UBS and Westpac Institutional Bank to host an investor call on 24 August regarding a potential Australian dollar denominated, 15.25-year non-call 5.25-year (15.25NC5.25), subordinated, floating-rate note (FRN), benchmark transaction. The notes are expected to be rated BBB/A-.
On 21 August, Mercury (BBB+ by S&P) revealed plans for a NZ$150-200 million (US$98-130.7 million) seven-year, green-bond transaction, offered to institutional and New Zealand retail investors. ANZ is arranger and green-bond coordinator as well as joint lead manager alongside BNZ, Craigs Investment Partners and Forsyth Barr. The offer is expected to launch on 31 August.
The Reserve Bank of New Zealand (RBNZ) has extended the maturity of lending available to local banks under its term lending facility, to five years from three years. The facility lends to banks at the official cash rate (OCR) – 0.25 per cent – in exchange for eligible collateral.
On 20 August, RedZed Lending Solutions mandated Commonwealth Bank of Australia and National Australia Bank to arrange investor calls in the week beginning 24 August regarding a potential Australian dollar denominated nonconforming residential mortgage-backed securities (RMBS) transaction.