News
On 20 February, Northern Territory Treasury Corporation (NTTC) (Aa3) launched a new, domestic, benchmark bond maturing in April 2031. The forthcoming deal has indicative price guidance of 89-93 basis points over the 10-year futures contract, equal to 85.4-89.4 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers ANZ, National Australia Bank and UBS.
Key data and information on 15 high-grade issuers active in the Australasian debt markets, including funding strategy information, debt data and issuer-specific perspectives.
On 20 February, Avanti Finance (Avanti) (BB by S&P) mandated National Australia Bank to arrange a series of investor meetings regarding a potential Australian dollar denominated transaction.
A set of circumstances conducive to borrowing has characterised the Australian government sector in the last 12 months. A lower sovereign requirement, regulatory changes and benign market conditions have all provided tailwinds, even as the economy has slowed. KangaNews convened the sector’s largest issuers in Sydney in January to discuss the state of play.
On 20 February, KfW Bankengruppe (KfW) (AAA/Aaa) launched a minimum A$100 million (US$66.8 million) increase to its September 2026 Kangaroo bond. Indicative price guidance for the forthcoming deal is 40 basis points area over semi-quarterly swap, equivalent to 41.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to Nomura and RBC Capital Markets.
On 19 February, Columbus Capital began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, Triton 2020-1. The deal is expected to launch in the week beginning 24 February.
A favourable basis swap has enabled New South Wales Treasury Corporation (TCorp) to take advantage of a funding opportunity in euros that was well inside its Australian dollar cost of funds. The issuer says there is opportunity in euros but its own clients’ demand constrains supply.
Sydney Airport’s market leadership, and the willingness of US private placement (USPP) investors to provide structural flexibility in transactions, were crucial to the execution of the world’s first sustainability-linked bond (SLB) with two-way pricing. Deal sources are bullish on proliferation of the product.