News
On 4 March, Inter-American Development Bank (IADB) (AAA/Aaa) launched a minimum A$25 million (US$17.7 million) tap of its June 2029 Kangaroo bond. The forthcoming deal has indicative price guidance of 42 basis points area over semi-quarterly swap, equivalent to 55.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager HSBC.
On 4 March, World Bank (AAA/Aaa) launched a minimum NZ$200 million (US$136.3 million) increase to its January 2024 Kauri bond. The forthcoming deal is being marketed in the area of 38 basis points over mid swap and is expected to price on the day after launch. ANZ and BNZ are joint lead managers.
Programmatic certification eased the route to market for Queensland Treasury Corporation (QTC)’s second green-bond transaction, the issuer says. With considerable growth in the eligible pool of assets since QTC’s first green bond in 2017, deal participants say the new deal demonstrates how borrowers can scale up their green issuance over time.
On 4 March, MUFG Bank Sydney Branch (MUFG Sydney) (A/A1) began taking indications of interest for a potential three-year transferrable certificate of deposit, with indicative price guidance of 91 basis points area over swap benchmarks. The deal is expected to launch in the near future with Commonwealth Bank of Australia, MUFG Securities, Morgan Stanley, National Australia Bank and Westpac Institutional Bank as joint bookrunners.
On 4 March, National Housing Finance and Investment Corporation (NHFIC) (AAA by S&P) revealed plans to hold debt investor meetings regarding a potential debut Australian dollar denominated, 10-year social-bond transaction. NHFIC is a newly-established corporate Commonwealth entity mandated to make loans to eligible entities to increase the supply of social and affordable housing.
On 4 March, Transpower New Zealand (Transpower) (AA-/Aa3) launched a new, NZ$100-150 million (US$68.3-102.4 million) five-year senior-unsecured transaction to institutional and New Zealand retail investors. The forthcoming deal has an indicative margin of 75-85 basis points over mid swap, with the final margin and interest rate to be determined following a bookbuild, on 7 March.
On 4 March, New Zealand Local Government Funding Agency (LGFA) (AA+/AA+) revealed it is considering a new, syndicated bond transaction to institutional and New Zealand retail investors. Full details for the potential April 2024 transaction are expected to be released in the week beginning 11 March and an investor conference call will take place on 6 March.
Corporate issuance was to the fore in the Australian market during the final days of February, with a A$1.4 billion (US$994.3 million) multi-tranche Kangaroo from McDonald's Corporation and a A$250 million deal from Virgin Australia. Meanwhile, Queensland Treasury Corporation printed its second and largest-ever green bond, with a A$1.25 billion 10-year syndicated deal.
McDonald’s Corporation (McDonald’s) capitalised on rallying market sentiment and a lack of recent corporate Australian dollar issuance to achieve a significant volume and tight pricing in its Kangaroo debut, according to deal participants.
On 1 March, South Australian Government Financing Authority (SAFA) announced it is opening a registration of interest for a potential one-year Australian Overnight Index Average (AONIA)-linked floating-rate note (FRN) transaction. The potential deal will form part of the issuer’s short-term funding requirements. UBS has been mandated as arranger.