News
Deutsche Bahn (AA-/Aa1) revealed on 19 September that it has mandated banks for its debut benchmark Kangaroo transaction. According to lead managers Daiwa Capital Markets and HSBC, the forthcoming deal will have a maturity of 7-10 years and is expected to launch in the near future.
On 18 September, SGSP Australia Assets (SGSP) (A-/A3) revealed plans to update debt investors in a call scheduled for the same day. A seven-year Australian dollar-denominated deal may follow, the meetings’ arrangers ANZ, National Australia Bank and Westpac Institutional Bank add.
On 18 September, the latest residential mortgage-backed securities (RMBS) deal for Suncorp-Metway, Apollo Series 2017-2, progressed to launch. The seven-tranche transaction is for indicative volume of A$750 million (US$543.8 million) and is expected to price on or before 22 September.
World Bank simultaneously returned to Kangaroo and Kauri issuance during the second week of September, printing A$850 million (US$679.2 million) in a new five-year Kangaroo and adding NZ$350 million (US$253.3 million) to its January 2022 Kauri. The Australasian securitisation market was active too, with new deals printed by La Trobe Financial and ME Bank, and added to the pipeline by Suncorp-Metway, Firstmac and Flexi Cards.
International Finance Corporation (IFC) (AAA/Aaa) mandated a minimum A$50 million (US$40 million) increase to its October 2027 Kangaroo bond on 15 September. The forthcoming deal is being marketed at 45 basis points area over semi-quarterly swap, equivalent to 57.25 basis points over Australian Commonwealth government bond.Citi and TD Securities are leading.
On 15 September, Flexi Cards revealed plans to conduct a series of investor meetings in relation to its Q Card Trust asset-backed securities (ABS) programme, ahead of a potential credit-card ABS deal. BNZ and Westpac Institutional Bank are arranging the meetings.
In August, Contact Energy (Contact) finalised a NZ$1.8 billion (US$1.3 billion) green borrowing programme – the first such certification completed by a New Zealand issuer and also the largest-ever single green certification by the Climate Bonds Initiative (CBI). KangaNews spoke to Louise Tong, Contact’s Wellington-based head of capital markets and tax, about the thinking behind the initiative, the process and debt-issuance plans.