News
We live in a global world. With circa 46 per cent of S&P 500 sales and 70 per cent-plus of the revenues in FTSE 100 members coming from overseas, the social and financial footprint of a company is no longer limited to its country of origin.
As we approach the KangaNews Awards Gala Dinner and its much-anticipated revelation of the individual winners in the KangaNews Awards 2017, I thought it might be worthwhile to shed some light on the process behind the decisions. It is a time-consuming and laborious process, but one that we at KangaNews hope is viewed positively by our market.
On 26 February, Western Australian Treasury Corporation (WATC) (AA+/Aa2) revealed plans for a new syndicated five-year domestic floating-rate note (FRN) transaction. ANZ, National Australia Bank and Westpac Institutional Bank are leading the forthcoming deal, which is expected to launch in the near future.
On 26 February, UBS Australia Branch (UBS Australia) (A+/A1/AA-) launched a domestic transaction. The forthcoming deal is comprised of a three-year floating-rate tranche, and a five-year tranche in either or both of fixed- and floating-rate formats. Indicative price guidance for the shorter-dated tranche is 75 basis points area over three-month bank bills, while the five-year is being marketed at 95 basis points area over swap benchmarks.
Rentenbank (AAA/Aaa/AAA) launched a minimum A$50 million (US$39.2 million) increase to its January 2023 Kangaroo on 26 February, via RBC Capital Markets and TD Securities. The forthcoming transaction is being marketed at 34 basis points area over semi-quarterly swap and 35.75 basis points area over Australian Commonwealth government bond. The deal will price on the day after launch.
Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) launched a new five-year domestic benchmark bond on 26 February. The transaction will be in either or both of fixed- and floating-rate formats, with indicative price guidance of 85 basis points area over swap benchmarks. The self-led deal is expected to price on or before 27 February.
On 26 February, Transpower New Zealand (Transpower) (AA-/Aa3) launched a NZ$75 million (US$54.7 million) domestic transaction. The forthcoming deal has indicative price guidance of 85-95 basis points over mid-swap. The final margin will be set on 28 February following a bookbuild, according to lead manager Westpac New Zealand.
At the end of January, Westpac Institutional Bank – together with its joint-venture partner, Bank of America Merrill Lynch – and KangaNews hosted US private placement (USPP) issuers and investors at their annual roundtable in Miami. Investors discuss the market’s new-found willingness to look at shorter-dated paper, among a range of talking points.
In early February, KangaNews facilitated a roundtable discussion in Sydney with Australian Executor Trustees (AET), Equity Trustees and Eticore. Coinciding with publication of the draft report of the Australian government’s review of competition in the financial system, participants reflect on the state of play in Australia’s corporate-trust sector.
KfW Bankengruppe highlighted issuance on both sides of the Tasman Sea during the last full week of February, with a NZ$400 million (US$292.5 million) five-year Kauri deal followed by a A$300 million (US$235 million) five-year Kangaroo. Elsewhere, Bluestone Group became the first Australian nonbank issuer to price a deal in 2018, printing a A$250 million residential mortgage-backed securities transaction.
In the wake of the first nonbank securitisation deal of 2018, issued by Bluestone Group (Bluestone) on 20 February, issuer and lead managers insist investor appetite remain robust. They say that after a bumper year of issuance in 2017, the sector is primed to build on last year’s momentum.