News
On 3 September, Liberty Financial (BBB- by S&P) launched a minimum A$50 million (US$35.9 million) increase to its June 2020 domestic line. Indicative price guidance for the forthcoming deal is 280 basis points area over semi-quarterly swap. Pricing is expected on or before 4 September, according to lead managers National Australia Bank and Westpac Institutional Bank.
On 3 September, General Motors Financial Company (General Motors) (BBB/Baa3/BBB) revealed plans to meet fixed-income investors in Australia and Singapore regarding a potential Australian dollar denominated transaction. The meetings, commencing 17 September, will be arranged by Deutsche Bank and Westpac Institutional Bank.
African Development Bank (AfDB)’s Abidjan-based chief treasury officer, Keith Werner, acknowledges that demand for Kangaroo supranational, sovereign and agency (SSA) paper from Japan is facing challenges at the current point in the cycle. But he says AfDB itself has been able to uncover some new demand from Japan.
Groupe BPCE (BPCE) returned to the Australian dollar market in April this year, for the first time since 2015, with the pricing of a senior-preferred and senior-nonpreferred transaction. Roland Charbonnel, the bank’s Paris-based director, group funding and investor relations, speaks with KangaNews on Japanese demand for its bonds in Australian dollars and other currencies.
Simon Lewis, Suncorp’s Brisbane-based deputy treasurer, says the issuer’s consistent investor-relations work has been key in harnessing demand from Japan. He reveals in particular that Japanese interest in Suncorp’s residential mortgage-backed securities (RMBS) deals has increased in recent times.
Having debuted in the Kangaroo market in 2017, Deutsche Bahn had returned to Australian dollar issuance twice by mid-August 2018, pricing 10- and 15-year deals driven by reverse enquiry. Christian Grosse-Erdmann, the issuer’s Berlin-based head of capital markets, says Japanese demand has been particularly strong for its long-dated transactions.
On 3 September, AMP Bank (A/A2) mandated ANZ, Citi, Commonwealth Bank of Australia and National Australia Bank for a potential three-year domestic deal, to come in either or both fixed- and floating-rate formats. The transaction is expected to launch and price in the near future.
To some extent, the trend increase in Australian base rates was harder to isolate because of the new pattern of behaviour in the short-end market around quarter ends. The story of spike and retreat may be here to stay.
On 3 September, ASB Bank (AA-/A1/AA-) launched a five-year domestic note offer for up to NZ$100 million (US$66.2 million). Indicative price guidance for the forthcoming deal is 100-105 basis points over mid swap. Pricing is expected on 5 September, according to lead manager Commonwealth Bank of Australia.
The final week of August saw significant deal flow on both sides of the Tasman Sea. More than A$6.1 billion (US$4.4 billion) came to the Australian market, including landmark deals for Suncorp Group, Kommunalbanken Norway and Macquarie University. Meanwhile, in New Zealand International Finance Corporation returned with a NZ$600 million (US$398.9 million) five-year Kauri.