News
On 13 March, Qudos Mutual (BBB- by S&P) launched an indicative A$25 million (US$17.7 million), one-year senior-unsecured floating-rate note (FRN) transaction. The forthcoming deal has indicative price guidance of 90 basis points area over three-month bank bills. Pricing is expected in the near future, according to sole bookrunner Westpac Institutional Bank.
On 12 March, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$25 million (US$17.7 million) increase to its June 2029 Kangaroo bond. The forthcoming transaction has indicative price guidance of 42 basis points area over semi-quarterly swap, equivalent to 54.45 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to sole lead manager Nomura.
On 12 March, FlexiGroup began taking indications of interest for its asset-backed securities (ABS) deal, Flexi ABS Trust 2019-1 (Flexi 2019-1). The forthcoming transaction has indicative total volume of A$300 million (US$211.8 million), and is expected to launch as early as the week beginning 18 March.
On 11 March, Resimac revealed plans for a potential New Zealand dollar deal from its Versailles residential mortgage-backed securities (RMBS) programme. BNZ, Merrill Lynch and Westpac New Zealand have been mandated to arrange investor meetings.
On 11 March, Macquarie Bank (Macquarie) launched its auto asset-backed securities (ABS) deal, SMART ABS Series 2019-1 (SMART 2019-1). The forthcoming transaction has A$500 million (US$351.7 million) preplaced, subject to final approval, and is likely to be upsized, with the Class A notes capped at A$1 billion. Pricing is expected on 15 March.
On 11 March, Qudos Mutual (BBB- by S&P) revealed plans for a one-year senior-unsecured floating-rate note (FRN) transaction, expected to launch in the near future. Westpac Institutional Bank is sole bookrunner for the potential deal.
Santos Finance (Santos) became the first Australian corporate borrower to access the US dollar Reg S market in nearly a year on 6 March, when it priced its second transaction in this format. Deal participants say the market is retracing the spread widening that occurred in the second half of 2018 and becoming an attractive option again for corporate borrowers looking for longer tenor deals.
On 11 March, ANZ New Zealand (ANZ NZ) (AA-/A1/AA-) launched a self-led, five-year, indicative NZ$100 million (US$68 million) transaction to institutional and New Zealand retail investors. The forthcoming deal has an indicative margin of 105-110 basis points area over mid swap, with the final margin and interest rate to be set following a bookbuild on 14 March.
On 11 March, New Zealand Local Government Funding Agency (LGFA) (AA+/AA+) launched an indicative NZ$500 million (US$339.8 million) April 2024 transaction to institutional and New Zealand retail investors by syndication. The forthcoming deal has an indicative margin of 33-37 basis points over mid swap, with the final margin and interest rate to be set following a bookbuild on 12 March.
On 11 March, Wellington International Airport (Wellington Airport) revealed plans for a potential NZ$75-100 million (US$50.9-67.9 million) resetting 11-year transaction. Full details for the deal will be released on 18 March, when the offer is expected to open. ANZ is arranger for the transaction and joint lead manager alongside Deutsche Craigs and Forsyth Barr.
The first week of March was highlighted by MUFG Bank Sydney Branch's A$1.25 billion (US$876.4 million) three-year floating-rate note deal and Incitec Pivot's Australian dollar market return. Meanwhile in New Zealand, World Bank priced a NZ$450 million (US$304 million) January 2024 Kauri tap and there was more corporate green bond deal flow, from Argosy Property.