News
On 14 June, NAB Trust Services (NR) launched its low-carbon shared-portfolio domestic floating-rate notes transaction, with volume of A$150-200 million (US$113.4-151.4 million). The forthcoming deal, which is being arranged by National Australia Bank (NAB), has a weighted-average life of around 3.2 years and indicative price guidance of 160 basis points area over three-month bank bills. Pricing is expected the day after launch.
Rentenbank (AAA/Aaa/AAA) launched a new, minimum A$150 million (US$113.5 million) 11-year Kangaroo bond on 14 June. The forthcoming deal is being marketed at 42 basis points area over semi-quarterly swap, equivalent to 50.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead managers Deutsche Bank and Mizuho Securities.
On 14 June, Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) launched a new 10-year non-call five-year, tier-two benchmark domestic transaction. The self-led deal has indicative price guidance of 180 basis points area over swap benchmarks and will come in either or both of fixed- and floating-rate note formats. Pricing is expected on the day of launch.
Avanti Finance (Avanti) priced a rare New Zealand residential mortgage-backed securities (RMBS) transaction on 12 June, in a NZ$200 million (US$140.7 million) deal arranged by Westpac New Zealand (Westpac). With a limited universe of local RMBS against which to compare, deal sources say the similarities between the Australian and New Zealand markets came into play.
On 13 June, following the release of the Queensland state budget the day before, Queensland Treasury Corporation (QTC) revealed a A$8 billion (US$6.1 billion) borrowing requirement for the 2018/19 financial year. This is approximately A$1.8 billion less than the forecast given in the 2017/18 borrowing programme.
Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) mandated a potential Australian dollar, 10-year non-call five-year, tier-two deal on 12 June. The self-led deal is expected to be rated BBB/Baa1.
Auckland Council (AA/Aa2) revealed it will launch a NZ$150-200 million (US$105.3-140.4 million) five-year green bond during the week beginning 18 June, in a statement posted on the NZX on 12 June. ANZ is arranging and leading the forthcoming deal.
On 12 June, Genesis Energy revealed plans for a maximum NZ$240 million (US$168.6 million) 30-year subordinated capital notes transaction. The offer will be available to retail and certain institutional investors, with the full details of the deal expected to be released in the week beginning 18 June.