News
On 29 January, Queensland Treasury Corporation (QTC) (AA+/Aa1) launched a minimum A$500 million (US$405.2 million) new five-year floating-rate note (FRN) line as well as a minimum A$500 million increase to its July 2028 benchmark bond. Indicative price guidance for the FRN is in the range of 14.5-16.5 basis points over three-month bank bills and 45-47 basis points over the 10-year futures contract. The 2028 tap is being marketed in the range of 45.5-47.5 basis points over Australian Commonwealth government bond.
BNG Bank (AAA/Aaa/AA+) launched an increase to its July 2028 Kangaroo bond on 29 January, via Deutsche Bank and RBC Capital Markets. Indicative price guidance for the forthcoming transaction is 60 basis points area over semi-quarterly swap and 67.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 29 January, Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) revealed plans for an Australian dollar-denominated additional tier-one (AT1) transaction, to be listed on the Australian Securities Exchange. ANZ, Commonwealth Bank of Australia, J.P. Morgan, Morgans, National Australia Bank, UBS and Westpac Institutional Bank will arrange both the potential offer and a domestic roadshow.
A short week for the Australian market was highlighted by Qatar National Bank's A$700 million (US$564.3 million) triple-tranche Kangaroo, while true corporate deal flow also got underway for 2018 with a United Energy Distribution A$400 million dual-tranche deal. Semi-government issuance ramped up with syndicated transactions from Treasury Corporation of Victoria and South Australian Government Financing Authority.
The Kauri market’s revival at the start of 2018 continued throughout January, demonstrated by the highest volume for the month seen in several years. Intermediaries say to the renaissance has been driven by more favourable basis-swap pricing, asset growth, stability in the political backdrop and the ongoing hunt for supply.
On 25 January, European Investment Bank (EIB) (AAA/Aaa/AAA) launched an increase to its February 2028 climate-awareness bond. The forthcoming transaction is being marketed at 48 basis points area over semi-quarterly swap and 52.75 basis points area over the Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager J.P. Morgan.
On 25 January, Rentenbank (AAA/Aaa/AAA) launched a minimum NZ$100 million (US$73.4 million) five-year Kauri bond. The forthcoming transaction has indicative price guidance of 37 basis points area over mid-swap. Pricing is expected on the day after launch, via BNZ and Commonwealth Bank.
Queensland Treasury Corporation (QTC) (AA+/Aa1) mandated a new four-year floating-rate note (FRN) transaction and a tap to its July 2028 fixed-rate line on 25 January. Both transactions will be 144A eligible and will launch "in the near future".
