News
On 19 May, Export-Import Bank of Korea (Kexim) (AA/Aa2/AA-) mandated J.P. Morgan, MUFG Securities, National Australia Bank and Westpac Institutional Bank to host an investor call, on the same day, regarding a potential Kangaroo transaction in either or both three- and five-year tenors.
On 19 May, Credit Suisse Sydney Branch (A+/A1/A) launched a three-year, floating-rate note (FRN) deal with indicative price guidance of 130 basis points area over three-month bank bills. Pricing is expected on the day of launch. ANZ, Commonwealth Bank of Australia, Credit Suisse, National Australia Bank, TD Securities and Westpac Institutional Bank are joint lead managers.
The following interview is with an Australian-based debt capital markets originator. It was conducted on 11 May 2020.
On 18 May, Western Australian Treasury Corporation (WATC) (AA+/Aa1) launched a new October 2031, Australian dollar denominated, syndicated, benchmark transaction. The forthcoming deal is being marketed at 76-80 basis points area over 10-year futures contract, equivalent to 68.2-72.2 basis points area over Australian Commonwealth government bond.
On 18 May, Credit Suisse Sydney Branch (A+/A1/A) mandated ANZ, Commonwealth Bank of Australia, Credit Suisse, National Australia Bank, TD Securities and Westpac Institutional Bank to host an investor call, on the same day, regarding a potential three-year, Australian dollar denominated, senior-unsecured transaction.
Australasian deal activity picked up significantly in the week ending 15 May. The Australian Office of Financial Management printed a A$19 billion (US$12.3 billion), December 2030, syndicated transaction and Woolworths Group reopened the primary corporate market with a A$1 billion deal.
Woolworths Group reopened the Australian dollar corporate bond market on 13 May with a dual-tranche transaction that leads say attracted a surprising level of support for 10-year tenor.
On 15 May, Western Australian Treasury Corporation (AA+/Aa1) mandated Bank of America Securities, Commonwealth Bank of Australia, National Australia Bank and UBS for a new October 2031 benchmark bond transaction.
The Australian Office of Financial Management (AOFM)’s December 2030 syndication provided an opportunity to test capacity amid what the issuer says are greatly improved market conditions.
The following interview is with an Australian-based fixed-income salesperson. It was conducted on 8 May 2020.
La Trobe Financial says third-party demand was sufficient to print a repeat residential mortgage-backed securities (RMBS) deal without direct investment from the Australian Office of Financial Management (AOFM). The issuer credits the presence of the government as a backstop and a secondary buyer for boosting confidence in its issuance return.
On 14 May, New Zealand Debt Management (NZDM) increased its New Zealand government bond (NZGB) programme to NZ$60 billion (US$35.9 billion) for the 2020/21 financial year, NZ$50 billion higher than forecast at its half year economic and fiscal update on 11 December 2019.