News
Balance-sheet asset growth is driving an increased funding need for Industrial and Commercial Bank of China New Zealand Branch (ICBC NZ), the issuer says. This translated into a NZ$200 million (US$132.6 million) print on 21 June which, according to KangaNews data, is the bank’s largest-ever New Zealand dollar deal.
On 26 June, Housing New Zealand (Housing NZ) (AA+ by S&P) mandated ANZ and Westpac Banking Corporation New Zealand Branch to arrange an investor conference call on 2 July, regarding a potential tap of its existing June 2025 and October 2028 lines.
Barclays received a blowout book in its recent Kangaroo deal, leading it to upsize to its maximum volume. The spread pick-up over domestic and global peers, lack of credit diversity and increasing acceptance of holding company (holdco) financial institution (FI) debt all gave domestic investors reasons to participate.
On 25 June, Metro Finance began taking indications of interest for its new auto and equipment asset-backed securities (ABS) deal, Metro 2019-1 Trust. The deal has indicative volume of A$300 million (US$209 million) and is expected to launch and price in the week beginning 1 July. National Australia Bank was mandated for the deal on 11 June.
On 25 June, Standard Chartered (BBB+/A2/A) launched its six-year non-call five-year (6NC5), total loss-absorbing capacity (TLAC)-eligible, senior-unsecured benchmark Kangaroo transaction. The deal will come in either or both fixed- and floating-rate formats and has indicative price guidance of 190 basis points area over swap benchmarks.
On 24 June, Standard Chartered (BBB+/A2/A) announced initial price thoughts of 195 basis points area over swap benchmarks for its six-year non-call five-year (6NC5), total loss-absorbing capacity (TLAC)-eligible, senior-unsecured Kangaroo transaction. The deal will come in either or both fixed- and floating-rate formats and is expected to launch in the near future.
On 24 June, Standard Chartered (BBB+/A2/A) revealed plans for a new six-year non-call five-year (6NC5) Australian dollar denominated, total loss-absorbing capacity (TLAC)-eligible, senior-unsecured transaction. The deal will come in either or both fixed- and floating-rate formats. Commonwealth Bank of Australia, Nomura, Standard Chartered and Westpac Institutional Bank have been mandated as joint lead managers.
Coupons in New Zealand’s retail corporate bond market continue to reach new lows, with Mercury’s deal priced on 19 June a record low for a subordinated-capital deal. The issuer and arranger say that retail investors will take time to adjust to lower coupons, but with redemptions in New Zealand currently outpacing supply, demand has been forthcoming.
On 24 June, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) launched a syndicated increase to its April 2029 line. Indicative price guidance for the forthcoming transaction is 51.25-54.25 basis points area over the 10-year futures contract, equivalent to 52-55 basis points area over Australian Commonwealth government bond.