News
On 12 June, China Construction Bank New Zealand (CCB New Zealand) (A/A1) launched a new, NZ$75-100 million (US$52.7-70.2 million) five-year domestic deal. The forthcoming transaction has indicative price guidance of 130 basis points area over swap. Pricing is expected on or before 14 June, according to lead managers ANZ, Commonwealth Bank of Australia and Westpac Banking Corporation New Zealand Branch.
Meridian Energy (BBB+/S&P) launched its NZ$150-200 million (US$105.4-140.5 million) seven-year domestic transaction to institutional and retail investors on 11 June. The forthcoming deal has an indicative margin of 130-140 basis points over swap, with the final margin and interest rate to be set following a bookbuild scheduled to take place on 15 June.
In the first full week of June, Barclays printed A$600 million (US$456.6 million) in a multi-tranche Kangaroo transaction and European Investment Bank priced a new A$250 million 11-year deal. In securitisation, Firstmac printed A$1 billion in its second residential mortgage-backed securities deal of 2018.
Firstmac printed its second residential mortgage-backed securities (RMBS) transaction of 2018, Firstmac Mortgage Funding Trust No. 4 Series 2-2018 (Firstmac 2-2018), on 8 June. The A$1 billion (US$760.6 million) deal was led by ANZ and J.P. Morgan. The transaction was predominantly placed with Japanese investors according to James Austin, chief financial officer at Firstmac in Brisbane, who spoke to KangaNews shortly after the deal priced.
After a prolific start to 2018, long-end Kangaroo issuance from supranational, sovereign and agency (SSA) issuers has tailed off significantly in recent months, with sizeable transactional volumes seen through the first months of the year reverting back to the small- and medium-sized deals which have previously characterised the market. European Investment Bank (EIB)’s recent deal bucks this trend.
On 7 June, China Construction Bank New Zealand (CCB New Zealand) (A/A1) revealed plans to meet investors regarding a potential domestic transaction. ANZ, Commonwealth Bank of Australia and Westpac Banking Corporation New Zealand Branch will arrange the meetings.