News
New Zealand’s environmental, social and governance (ESG)-themed bond market took another giant leap on 28 March, with the pricing of Housing New Zealand (Housing NZ)’s debut sustainability bond. The deal nearly doubles the total size of the New Zealand ESG-themed market and drove investor diversity and a positive pricing outcome for the issuer.
On 1 April, Heartland Bank (BBB by Fitch) launched a five-year deal for up to NZ$75 million (US$51.1 million), with the ability to take oversubscriptions, to institutional and New Zealand retail investors. The forthcoming deal has an indicative margin of 175-190 basis points over mid swap, with the final margin and interest rate to be set on 5 April.
The last week of March saw Housing New Zealand price a debut NZ$500 million (US$339.4 million) 7.5-year sustainability bond. Meanwhile, Columbus Capital printed a A$750 million (US$531.5 million) residential mortgage-backed securities deal off its Triton programme and Macquarie Group closed a A$905.5 million additional tier-one transaction.
MUFG Bank Auckland Branch (MUFG Auckland) priced its inaugural New Zealand dollar deal on 27 March. A growing New Zealand dollar balance sheet led to the decision to seek domestic funding, according to the issuer, while leads insist the credit occupies an attractive space in New Zealand’s financial-institution (FI) landscape.
Peet came to the market for its fourth debt capital market transaction on 26 March, with the issuer raising capital to position itself for opportunities that it believes may arise as a result of a property market sell-off. The deal’s lead says the nonrated corporate market continues to provide attractive opportunities for issuers and investors.
On 28 March, Woolworths Group (Woolworths) (BBB/Baa2) revealed plans to hold debt investor meetings in Australia and Asia, regarding a potential inaugural Australian dollar green bond. ANZ, Citi and J.P. Morgan have been mandated to arrange the meetings, commencing 4 April.
On 28 March, Downer Group Finance (Downer) (BBB by Fitch) mandated Mizuho Securities, National Australia Bank and Westpac Institutional Bank to arrange a series of investor meetings across Australia and Asia commencing 4 April, regarding a potential new Australian dollar denominated transaction.
On 27 March, Bluestone Group (Bluestone) began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Sapphire 2019-1 Trust. The potential deal has indicative total volume of A$400 million (US$284.1 million) and is expected to launch and price in the week beginning 1 April.