News
On 5 March, Province of Manitoba (Manitoba) (A+/Aa2) launched a minimum A$50 million (US$38.7 million) increase to its August 2028 Kangaroo bond, via Daiwa Capital Markets and TD Securities. The forthcoming deal is being marketed at 55 basis points area over semi-quarterly swap and 58.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$300 million (US$232.8 million) five-year Kangaroo social bond on 5 March. The forthcoming transaction has indicative price guidance of 30 basis points area over semi-quarterly swap and 33.75 basis points area over Australian Commonwealth government bond. The deal is IFC’s first social bond in Australian dollars and is expected to price on or before 6 March.
On 5 March, Latitude Finance Australia (Latitude) revealed plans to meet with investors in Australia and the UK, regarding a potential Australian dollar denominated asset-backed securities (ABS) transaction from its Latitude Australia Credit Card Master Trust programme. The meetings, to be arranged by Bank of America Merrill Lynch, Deutsche Bank and National Australia Bank, will commence on 5 March in Australia and on 12 March in the UK.
On 5 March, following the Australian Commonwealth government’s purchase of Snowy Hydro from the state governments of New South Wales and Victoria, the Australian Office of Financial Management (AOFM) updated its issuance requirement for the 2017/18 financial year. The A$6 billion (US$4.7 billion) purchase will be funded by additional treasury bond issuance during the 2018 calendar year.
Investore Property (Investore) revealed plans for a NZ$75-100 million (US$54.4-72.5 million) six-year domestic transaction on 5 March. The forthcoming deal, which is expected to open on 21 March and close on 12 April, is being targeted at New Zealand institutional and retail investors. The issue margin will be determined following a bookbuild on or around 12 March.
The final days of February were awash with benchmark transactions from financial institutions in the Australian market, the largest of which was Westpac Banking Corporation's A$2.6 billion (US$2 billion) dual-tranche, five-year deal. Meanwhile in New Zealand, European Investment Bank priced a NZ$200 million (US$145.5 million) five-year Kauri transaction and Transpower New Zealand printed a NZ$125 million seven-year deal.
On 2 March, following the sale of the New South Wales government’s (AAA/Aaa) share of the Snowy Hydro Scheme (Snowy Hydro) to the Australian Commonwealth government, New South Wales Treasury Corporation (TCorp) announced that its funding requirement for the 2017/18 financial year remains unchanged. In its half-yearly review, released on 14 December 2017, TCorp indicated that its funding requirement was A$6.4 billion (US$5 billion).