News
On 15 January, Royal Bank of Canada Sydney Branch (RBC Sydney) (AA-/Aa3) launched a new, one-year domestic benchmark bond. Indicative price guidance for the forthcoming transaction is 30 basis points area over three-month bank bills. The self-led deal will price on the day of launch.
The three-year domestic deal mandated by ASB Bank (AA-/A1) on 12 January progressed to launch on 15 January. The self-led, indicative NZ$100 million (US$72.5 million), floating-rate note (FRN) transaction has initial price guidance of 70-73 basis points over BKBM and is expected to price on 17 January.
The Australian domestic market opened for 2018 with an ANZ Banking Group A$3 billion (US$2.4 billion) multi-tranche transaction during the second week of January. Meanwhile, the Kauri market continued its strong start to 2018 with more new deals, including NZ$500 million (US$363.2 million) for Asian Development Bank and NZ$375 million for Inter-American Development Bank.
On 12 January, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$50 million (US$39.4 million) increase to its October 2027 Kangaroo bond. The transaction is being marketed at 43 basis points over semi-quarterly swap and 50.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager HSBC.
On 12 January, Australian Office of Financial Management (AOFM) revealed plans for a new syndicated November 2029 nominal bond, to be issued in the week beginning 15 January. Citi, Commonwealth Bank of Australia, Deutsche Bank and UBS are lead managers.
CAF – Development Bank of Latin America (AA-/Aa3/AA-) launched a minimum A$40 million (US$31.5 million) increase to its September 2027 Kangaroo bond on 12 January, via Nomura. Indicative price guidance for the forthcoming transaction is 125 basis points area over semi-quarterly swap and 127.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 12 January, ASB Bank (AA-/A1) mandated a potential three-year domestic deal. The self-led floating-rate note (FRN) transaction is scheduled for launch during the week of 15 January.
The ability of Vodafone Group (Vodafone) to execute a sizeable Australian dollar transaction in short order and close to the end of a calendar year is testament to the further development of the local market, buy-side sources and intermediaries agree. The enhanced status of the Australian market is only emphasised by the issuer’s ability to print in scale without specific local premarketing.