News
On 20 April, Suncorp-Metway (A+/A1) launched a new five-year, Australian dollar denominated, floating-rate note, benchmark, covered bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 115-120 area basis points area over three-month bank bills.
Kāinga Ora – Homes and Communities has become the first New Zealand issuer without direct secondary support from the central bank to print a primary deal in New Zealand since the COVID-19 crisis began. The issuer says demand for the 17 April transaction outstripped expectations, particularly at 10-year tenor.
The week ending 17 April saw a wave of issuance in the Australasian markets with the Australian Office of Financial Management printing a record A$13 billion (US$8.3 billion) via syndication. Meanwhile, Kāinga Ora - Homes and Communities issued NZ$1 billion (US$600 million) across two tranches.
On 17 April, Suncorp-Metway (A+/A1) mandated ANZ, RBC Capital Markets and Westpac Institutional Bank for a potential new five-year, Australian dollar denominated, floating-rate note, covered bond.
On 17 April, KfW Bankengruppe (KfW) (AAA/Aaa) launched a minimum A$100 million (US$63.7 million) increase to its March 2023 Kangaroo bond with indicative price guidance 51 basis points area over semi-quarterly swap and 55 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, says sole lead TD Securities.
The following interview is with an Australian-based funding executive at a nonbank financial institution. It was conducted on 3 April 2020.
The Australian Office of Financial Management (AOFM)’s first syndicated deal since the beginning of the COVID-19 crisis and the consequent deluge of fiscal stimulus is a key moment in the Australian market recovery. Deal sources are confident the jumbo volume and broad-based demand signal that large transactions will be possible.
On 16 April, Housing New Zealand, a subsidiary of Kāinga Ora – Homes and Communities (AA+/Aaa), revealed a second book update for its dual-tranche transaction after launching earlier in the day. Pricing has been revised on both the 2025 and 2030 lines, at, respectively, 75 basis points and 125-127 basis points area over mid-swap.
On 16 April, Housing New Zealand, a subsidiary of Kāinga Ora – Homes and Communities (AA+/Aaa), revealed a book update for its dual-tranche transaction after launching earlier in the day. The new minimum volume for the 2025 line is NZ$400 million (US$238.8 million), with price guidance revised to 75-77 basis points area over mid-swap. The 2030 maturity’s minimum volume also increased to NZ$200 million with pricing unchanged at 125-130 basis points area over mid-swap.