News
On 23 June, National Housing Finance and Investment Corporation (NHFIC) (AAA by S&P) launched a new 12-year, Australian dollar denominated, social bond. The forthcoming deal is being marketed at 55 basis points area over 10-year futures contract, equivalent to 46.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers ANZ, UBS and Westpac Institutional Bank.
On 22 June, Brisbane Airport (BBB/Baa2) began taking indications of interest for a new Australian dollar denominated transaction, offered in either or both six- and 10.5-year tenor. Indicative price guidance for the six-year tranche is 300-325 basis points area over semi-quarterly swap, while the 10.5-year tranche, which is proposed in either fixed or floating-rate note format, is 400-415 basis points area over swap benchmarks.
On 22 June, Seek (NR) revealed plans for an Australian dollar transaction, potentially to tap its existing 2026 subordinated notes or issue new subordinated notes. At the same time, Seek released a tender memorandum, inviting holders of its A$175 million (US$119.5 million), April 2022, senior floating-rate notes (FRN) to offer any or all of their holdings for potential purchase by the issuer.
The following interview is with a Hong Kong-based fixed-income investor. It was conducted on 3 June 2020.
On 22 June, Nordic Investment Bank (NIB) (AAA/Aaa) launched a five-year, minimum NZ$150 million (US$96.1 million), Kauri transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 43 basis points area over mid-swap. ANZ and BNZ are leading.
Primary market functionality in Australian securitisation is much closer to normal than might have been expected including an orderly flow of deals in the past month, market sources say. Investor sentiment is improving even as the wider impact of COVID-19 on the Australian economy becomes apparent.
On 22 June, National Housing Finance and Investment Corporation (NHFIC) (AAA by S&P) announced an investor call, to be held on the same day, regarding a potential 12-year Australian dollar denominated social bond deal. ANZ, UBS and Westpac Institutional Bank have been mandated as lead managers.
Australasian deal activity in the third week of June was highlighted by New Zealand Debt Management's record NZ$7 billion (US$4.5 billion) syndicated transaction. Meanwhile, securitisation continued to rebound with Liberty Financial and RedZed Lending Solutions printing deals.