News
Japanese investors have supported the evolution of long-dated supranational, sovereign and agency issuance in Australia in recent years. However, market factors are combining to call the support these investors have traditionally provided into question. TD Securities gives the latest update.
Property for Industry (NR) launched a NZ$75-100 million (US$49.1-65.5 million) seven-year fixed-rate transaction on 17 September. The bonds, which mature in October 2025 and are being issued under same-class exemption rules, are targeted at New Zealand institutional and retail investors.
On 14 September, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$50 million (US$36 million) increase to its October 2027 Kangaroo, via UBS. Indicative price guidance for the forthcoming deal is 41 basis points area over semi-quarterly swap. Pricing is expected on the day of launch.
The second week of September saw benchmark three-year financial institution deals from Toronto Dominion Bank and MUFG Bank Sydney Branch, as well as Société Générale's A$550 million (US$395.5 million) dual-tranche senior-nonpreferred EMTN deal. In the semi-government space, South Australian Government Financing Authority printed A$500 million taps to its 2022 and 2026 select lines.
On 13 September, Thames Water Utilities (Thames Water) revealed plans for a nondeal fixed-income investor update in Australia and Asia, to be arranged by Commonwealth Bank of Australia and National Australia Bank, commencing 17 September.
On 13 September, AT&T (BBB/Baa2/A-) launched a new, benchmark Kangaroo deal. The transaction is comprised of five-year tranches in fixed- and floating-rate formats with indicative price guidance of 125-130 basis points area over swap benchmarks, as well as long-seven-year and 10-year fixed-rate tranches, being marketed at 170 basis points area and 200 basis points area over semi-quarterly swap respectively.
Société Générale (SocGen) (A/A1/A) launched a benchmark, Australian dollar denominated five-year senior-nonpreferred transaction on 13 September. The forthcoming deal will come in either or both fixed- and floating-rate formats and has indicative price guidance of 165 basis points area over swap benchmarks. The deal is expected to be rated BBB+/Baa2/A. Pricing is expected on the day of launch, according to lead managers Nomura, SocGen, TD Securities and Westpac Institutional Bank.