News
On 20 February, Northern Territory Treasury Corporation (NTTC) (Aa2) launched a new, 15-year domestic benchmark bond via ANZ. Indicative price guidance for the forthcoming deal is 75 basis points area over Australian Commonwealth government bond. Pricing is expected by 21 February.
On 20 February, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched a minimum A$25 million (US$19.8 million) increase to its February 2028 Kangaroo bond. The forthcoming deal, led by TD Securities, is being marketed at 41.5 basis points area over semi-quarterly swap and 46.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched a new minimum NZ$250 million (US$184.3 million) five-year Kauri bond on 20 February. The forthcoming transaction has indicative price guidance of 37 basis points area over mid-swap. ANZ, BNZ and TD Securities are joint lead managers.
Late on the Australian day on 19 February, BNG Bank (AAA/Aaa/AA+) mandated an increase to its to its 2028 maturity Kangaroo bond. The transaction, which has Deutsche Bank, Nomura and RBC Capital Markets as leads, is for minimum volume of A$50 million (US$39.6 million) and is being marketed at 53 basis points over mid-swap or 60.25 basis points over Australian Commonwealth government bond.
Transpower New Zealand (Transpower) revealed on 19 February that it is considering a new seven-year unsecured domestic deal under same-class exemption rules. Full details of the deal, which will be targeted at retail and institutional investors, will be disclosed in late February, according to lead manager Westpac Institutional Bank.
On 19 February, Bluestone Group (Bluestone) launched its Sapphire XVIII 2018-1 Trust residential mortgage-backed securities (RMBS) transaction. Indicative total volume, excluding Class X1 and Class X2 notes, is A$250 million (US$197.9 million).
On 19 February, GMT Bond issuer (BBB/S&P), the financing entity of Goodman Property Trust (Goodman), launched a NZ$75 million (US$55.4 million) 5.5-year domestic deal. The forthcoming transaction has indicative price guidance of 120-130 basis points over mid-swap. The margin will be set after a bookbuild on 23 February.
Deal activity came largely from the Kangaroo supranational, sovereign and agency sector during the third week of February, with African Development Bank's A$125 million (US$99.6 million) tap to its August 2028 line the largest Kangaroo print. In New Zealand, Bank of China New Zealand priced a NZ$50 million (US$37 million) tap to its 2022 domestic line.
On 14 February, ANZ Banking Group (ANZ) issued the first-ever bond from an Australian bank to be tied to the UN Sustainable Development Goals (SDGs), the first such deal ever in the euro market and just the second from any bank globally. KangaNews spoke to deal sources about the demand drivers, the bank’s own motivations and the shape of market evolution.