News
The following interview is with a New Zealand based bond issuer. It was conducted on 19 March 2020.
On 16 April, Housing New Zealand, a subsidiary of Kāinga Ora – Homes and Communities (AA+/Aaa), launched a dual-tranche transaction comprising a tap of its June 2025 line and a new April 2030 line. Each tranche has minimum volume of NZ$100 million. Indicative price guidance is 75-80 basis points and 125-130 basis points over mid swap for the respective 2025 and 2030 transactions.
The following interview is with two funding executives from a supranational, sovereign and agency sector issuer. It was conducted on 29 March 2020.
On 15 April, Royal Bank of Canada Sydney Branch (RBC Sydney) launched a new three-year, Australian dollar denominated, benchmark, floating-rate note, covered bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 100 basis points area over three-month bank bills.
New Zealand Local Government Funding Agency is confident domestic market conditions are improving, supported by an expanded central bank asset-purchase programme. The issuer says its latest transaction is an encouraging sign the market will have capacity for increased supply from New Zealand’s semi-government borrowers.
On 14 April, Kāinga Ora – Homes and Communities revealed plans for an investor call on its response to COVID-19, including its updated borrowing requirement, to take place on 15 April. A new, NZ$1 billion (US$611.6 million) Crown standby facility has reduced Kāinga Ora’s 2020 calendar year borrowing requirement to NZ$2 billion from NZ$2.5 billion.
The Australian dollar credit market has been reopened by three Canadian bank covered bond deals that priced within a week. Each deal showed signs of market development, although demand remains driven primarily by bank balance sheets as liquidity gradually improves with central bank support.
The following interview is with a New Zealand-based capital markets lawyer. It was conducted on 8 April 2020.
On 14 April, Australian Office of Financial Management (AOFM) launched a new November 2024, syndicated, benchmark, treasury bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 16-20 basis points area over three-year futures contract. ANZ, Deutsche Bank, UBS and Westpac Institutional Bank are leading.