News
On 4 October, BNP Paribas (A/Aa3/A+) began taking indications of interest for a benchmark, Australian dollar denominated, 15-year non-call 10-year tier-two EMTN deal. The deal is expected to launch in the near future and is being marketed at 220 basis points area over mid swap. The expected issue ratings are BBB+/Baa2/A.
Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, launched a minimum A$200 million (US$142.1 million) seven-year domestic deal on 4 October. Indicative price guidance – at 140-145 basis points area over semi-quarterly swap – is unchanged from initial price guidance.
Heathrow Funding (A-/A-), the financing arm of Heathrow Airport, launched its debut, Australian dollar denominated 10-year deal on 4 October, via Commonwealth Bank of Australia and National Australia Bank. The forthcoming deal has indicative price guidance of 140 basis points area over semi-quarterly swap and is expected to price on the day of launch.
On 4 October, Housing New Zealand (Housing NZ) (AA+) revealed plans for a global investor conference call to be held on 9 October, ahead of a potential new 10-year domestic deal and a potential increase to its existing 2023 line. ANZ, BNZ and Westpac Banking Corporation New Zealand branch have been mandated.
The race to save the planet is real. The science is grim – some say it is already too late to save our species. However, the fact that the transition to a low-carbon economy is as much an economic issue as an environmental one gives debt-market participants reason to be optimistic.
On 3 October, Credit Union Australia (CUA) began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Series 2018-1 Harvey Trust.
On 3 October, Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, began taking indications of interest for a potential seven-year domestic deal. The transaction has initial price guidance of 140-145 basis points area over semi-quarterly swap and is expected to launch in the near future. ANZ and National Australia Bank are joint lead managers.
Andrew Schwartz, Melbourne-based group managing director at Qualitas – an investment manager active in Australian commercial property debt with A$2 billion (US$1.5 billion) of committed capital – shares a perspective on the commercial property as an investment destination. He discusses the future direction of the market and the advantages of debt over equity at the current point in the cycle.