News
Nordic Investment Bank (NIB) (AAA/Aaa) launched a minimum NZ$100 million (US$66.4 million) increase to its March 2021 Kauri bond on 26 September, via BNZ and Commonwealth Bank of Australia. Indicative price guidance for the forthcoming deal is 26 basis points area over mid swap.
On 26 September, Auckland International Airport (Auckland Airport) (A- by S&P) revised the indicated margin for its forthcoming six-year bond offer to 95-100 basis points over mid swap. The final margin and interest rate for the NZ$125-175 million (US$83.1-116.3 million) transaction is due to be announced on 26 September following the conclusion of a bookbuild.
On 24 September, Liberty Financial (Liberty) launched its residential mortgage-backed securities (RMBS) transaction, Liberty Series 2018-3. The forthcoming deal has indicative total volume of A$500 million (US$363.5 million) equivalent, including the euro denominated A1-c notes, with the potential to upsize. Pricing is expected on or before 27 September.
Auckland International Airport (Auckland Airport) (A- by S&P) launched its six-year, NZ$125-175 million (US$83.4-116.7 million) retail bond offer on 24 September. The forthcoming deal has indicative price guidance of 95-105 basis points over mid swap, with the final margin to be determined on 26 September.
The third week of September saw limited deal flow but significant volume, with Australian Office of Financial Management pricing a A$3.75 billion (US$2.7 billion) inflation-linked bond by syndication, due February 2050, and National Australia Bank printing a five-year dual-tranche A$2 billion deal. Meanwhile, Commonwealth Bank of Australia priced its residential mortgage-backed securities deal, Medallion Trust Series 2018-1.
On 20 September, Commonwealth Bank of Australia (CommBank) launched its prime residential mortgage-backed securities (RMBS) transaction, Medallion Trust Series 2018-1 (Medallion 2018-1). The deal has indicative total volume of A$1.63 billion (US$1.2 billion) and will not grow. CommBank and Deutsche Bank are joint lead managers.
The Australian Office of Financial Management (AOFM) priced its largest treasury indexed bond (TIB) syndication since 2009 on 18 September, issuing a A$3.75 billion (US$2.7 billion) deal due February 2050. The government debt-management agency says a groundswell of demand from domestic fund managers as well as a degree of scarcity value drove the transaction.
On 19 September, Liberty Financial (Liberty) began taking indications of interest for a potential residential mortgage-backed securities (RMBS) transaction, Liberty Series 2018-3. The deal will be denominated in Australian dollars and euros, and is expected to launch in the week commencing 24 September.
New Zealand fund managers say their market has made great strides towards matching global standards for environmental, social and governance (ESG) integration in recent years. While the equity market has led the way – and expects to deliver more stringent exclusions and shareholder activism in future – there is also a growing focus on ESG in the fixed-income sector.