News
The Australian Office of Financial Management (AOFM) has provided an update on how its Structured Finance Support Fund (SFSF) will invest. The 9 April announcement describes a broad allocation strategy, including helping to clear an “overhang developing in the secondary market” and working with the Australian Securitisation Forum (ASF) to support securitisation trusts affected by missed interest payments.
Australasian deal activity picked up significantly in the shortened week before Easter. Australian and New Zealand sovereign and semi-government issuers printed, respectively, A$3.625 billion (US$2.3 billion) and NZ$4.6 billion (US$2.8 billion) of public, syndicated transactions.
New Zealand Debt Management (NZDM) faces a mountain of issuance in the coming months despite a NZ$3.5 billion (US$2.1 billion) May 2031 syndicated transaction printed on 7 April. The sovereign debt-management agency spoke to KangaNews about its strategy in the wake of the new transaction.
On 9 April, Australian Office of Financial Management (AOFM) announced its intentions for a new 21 November 2024, Australian dollar denominated, syndicated, treasury bond. Launch is expected in the week beginning 14 April. ANZ, Deutsche Bank, UBS and Westpac Institutional Bank are leading.
The following interview is with an Australia-based debt capital markets originator. It was conducted on 30 March 2020.
The Australian semi-government sector is undertaking a flurry of issuance in syndicated and privately placed format, as borrowers seek to stay ahead of growing funding tasks. Deal sources say the market is functional but challenging, as issuers try to overcome substantial sovereign supply and an evolving central bank buying programme.
On 8 April, New Zealand Local Government Funding Agency (LGFA) (AA+/AA+) launched an indicative NZ$300 million (US$178.9 million), six-year, syndicated deal to institutional and New Zealand retail investors. The issuer received bids in excess of NZ$600 million at the indicative margin range of 78-83 basis points over swap. The margin has now been revised to 78-80 basis points area, with pricing expected on 9 April.
International Finance Corporation (IFC)’s latest Kangaroo social bond leverages increased recognition of the product’s utility in the COVID-19 crisis, the issuer states. It is the first new green, social and sustainability bond line established in the Australian dollar market this year.