News
The biggest issue in the New Zealand debt market has historically been shortage of domestic supply relative to a demand pool that has grown significantly in the KiwiSaver era. In September, BNZ and KangaNews convened their annual New Zealand roundtable with a specific goal in mind: to discuss whether the national infrastructure need, the emergence of bank securitisation and other factors can radically change the supply landscape.
Australia has bucked the global trend to move away from interbank offered rates (IBORs) that the market benchmarks off and on which short- and long-term funding is based. Active trading in bank bills makes the bank-bill swap rate (BBSW) a viable base rate for the long term – especially now the Australian Securities Exchange (ASX) has radically overhauled the BBSW calculation methodology as a cooperative effort with market participants.
On 11 October, Housing New Zealand (Housing NZ) (AA+) revised the price guidance for its new 2028 line transaction to 50 basis points over mid-swap, having launched with a range of 50-57 and subsequently revised to 50-52 basis points over mid-swap earlier the same day. The price guidance for the increase of its 2023 line remains unchanged at 17 basis points over mid-swap.
On 11 October, Lendlease Group (Lendlease) (Baa3/BBB-) mandated ANZ, HSBC and Westpac Institutional Bank to arrange a series of debt investor meetings in Asia and Australia, regarding a potential Australian dollar denominated transaction. The meetings will commence in Asia on 16 October and Australia on 22 October.
On 11 October, Housing New Zealand (Housing NZ) (AA+) revised the indicative price guidance for its new 2028 line to 50-52 basis points over mid-swap, having launched at 50-57 basis points over mid-swap earlier the same day. The indicative price guidance for the increase to its 2023 line is unchanged, at 17 basis points over mid-swap.
On 11 October, Korea Development Bank (KDB) (AA/Aa2/AA-) launched a new, Australian dollar denominated, five-year Kangaroo bond, to come in either or both fixed- and floating-rate formats. The forthcoming deal has indicative price guidance of 100-103 basis points area over swap benchmarks.
On 11 October, La Trobe Financial revealed plans to meet domestic and offshore investors in a series of meetings scheduled to commence on 22 October. La Trobe Financial has mandated HSBC, Macquarie Bank, National Australia Bank, United Overseas Bank and Westpac Institutional Bank to arrange the meetings and the residential mortgage-backed securities (RMBS) transaction which may follow.
On 11 October, Housing New Zealand (Housing NZ) (AA+) launched a minimum NZ$100 million (US$64.5 million) new 10-year domestic deal and an increase to its existing 2023 line, with indicative price guidance of 50-57 basis points and 17-19 basis points over mid-swap respectively.
International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$75 million (US$53.4 million) increase to its October 2027 Kangaroo bond on 10 October, via TD Securities. The forthcoming deal has indicative price guidance of 40 basis points area over semi-quarterly swap, equivalent to 48.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 10 October, Centuria Capital No. 2 Fund (NR), a wholly owned subsidiary of Centuria Capital Group (Centuria), launched a new, minimum A$75 million (US$53.3 million) 4.5-year domestic deal. The forthcoming transaction will come in either or both fixed- and floating-rate formats, with indicative price guidance of 6.5 per cent area and 425 basis points area over three-month bank bills respectively.