News
On 18 September, Korea Southern Power (Aa2/AA-) mandated BNP Paribas, HSBC and Nomura to arrange a series of investor meetings in Asia and Australia in the week beginning 26 September, regarding a potential mid-curve Kangaroo transaction.
On 18 September, Pacific National (BBB-/BBB-) launched a new 10-year, Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate format. The deal is being marketed at 260 basis points area over swap benchmarks, according to joint lead managers ANZ, Commonwealth Bank of Australia, MUFG Securities and National Australia Bank.
On 17 September, Volkswagen Financial Services Australia (Volkswagen Australia) (BBB+/A3) mandated Bank of America Merrill Lynch and RBC Capital Markets to engage Australian dollar asset-backed securities (ABS) investors regarding a potential transaction under its Driver Australia ABS programme.
Spark Finance (Spark) returned to the Australian dollar market on 11 September with its first deal since its inaugural Kangaroo in October 2017. Deal sources say there is latent demand in Australian dollars resulting from an undersupply of corporate credit, while the lower-for-longer interest rate environment is pushing demand further out on the curve.
Housing New Zealand (Housing NZ) tapped two of its existing lines on 11 September for an aggregate NZ$600 million (US$383 million). The transaction was the first under a rebranded framework which incorporates all the issuer’s outstanding lines as wellbeing bonds explicitly to signal alignment with the New Zealand government’s broader wellbeing objectives.
Central Nippon Expressway Company (CENEXP)’s first public issuance of Australian dollar denominated bonds was issued off the back of reverse enquiries from investors, deal sources say. After initially announcing an Australian and US dollar mandate, CENEXP elected to print A$350 million (US$240.6 million) of five-year bonds on 11 September in the Reg S market.
African Development Bank (AfDB) (AAA/Aaa/AAA) launched a minimum A$50 million (US$34.3 million) increase to its March 2022 Kangaroo bond on 17 September. The deal is being marketed at 37 basis points area over semi-quarterly swap, equivalent to 38.8 basis points area over Australian Commonwealth government bond. Pricing is expected on or before 18 September, according to lead manger Nomura.
On 17 September, United Energy Distribution (UED) (A- by S&P) mandated ANZ, Commonwealth Bank of Australia and HSBC to arrange an investor update call on the day of the announcement, regarding a potential seven-year domestic deal.
On 17 September, Pacific National (BBB-/BBB-) announced it is taking indications of interest for a potential 10-year, Australian dollar denominated benchmark Reg S deal, offered in either or both fixed- and floating-rate format. Initial price guidance for the transaction is 265 basis points area over swap benchmarks.
Agricultural Bank of China Sydney Branch (A/A1/A) launched a new three-year, benchmark domestic floating-rate note transaction on 17 September. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 92 basis points area over three-month bank bills. ANZ, Bank of China, Commonwealth Bank of Australia and National Australia Bank are leading.
On 17 September, Credit Agricole London Branch (Credit Agricole) (A+/A1/A+) launched a new five-year, Australian dollar denominated senior-preferred transaction, offered in either or both fixed- and floating-rate format. Indicative price guidance for the forthcoming deal is 105-108 basis points area over swap benchmarks. Credit Agricole, Nomura, TD Securities and Westpac Institutional Bank are leading.