News
On 9 August, Suncorp-Metway (Suncorp) (A+/A1/A+) mandated a new, five-year Australian dollar benchmark senior bond. The forthcoming transaction is expected to launch in the near future, according to joint lead managers ANZ, Commonwealth Bank of Australia, Citigroup and Westpac Institutional Bank.
Inter-American Development Bank (IADB) (AAA/Aaa) launched a new, minimum A$100 million (US$79.1 million) February 2028 Kangaroo bond on 9 August. Initial price guidance for the deal is in the area of 45 basis points over semi-quarterly swap or 52 basis points over Australian Commonwealth government bond.
Places for People Treasury (Places for People) (A/A3) revealed initial price thoughts on a five-year domestic deal on 9 August. The forthcoming deal is being marketed at 190-195 basis points area over semi-quarterly swap and is expected to launch “in the near term”, according to lead manager National Australia Bank.
The debut Kangaroo transaction issued by Verizon Communications (Verizon) highlights the increasingly productive state of the Australian dollar corporate bond market and its international competitiveness, market users say. Verizon elected to debut in Australia off a local programme, maximising the scale of its deal without compromising on relative pricing.
CNH Industrial Capital Australia (CNH Capital) launched a minimum A$350 million (US$277.6 million) CNH Receivables Trust Series 2017-1 asset-backed securities (ABS) issue on 8 August. The transaction is expected to price on or before 11 August, according to sole lead manager ANZ.
Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) mandated a new, Australian dollar-denominated, tier-two deal on 8 August. Price guidance on the forthcoming 12-year non-call seven-year EMTN transaction, which is expected to be rated BBB/Baa1, is 190 basis points area over semi-quarterly swap, according to lead managers Nomura, TD Securities and Westpac Institutional Bank.
In the wake of New Zealand’s first-ever green bond, the deal’s issuer and arranger express optimism around the development of socially responsible investment (SRI) locally. In particular, they highlight a change in the nature of conversations market participants are having about the emerging asset class as a sign of burgeoning demand.
Toyota Finance New Zealand (Toyota NZ) (AA-/Aa3) launched a new domestic transaction on 7 August. The five-year deal is for indicative volume of NZ$75 million (US$55.6 million) and is being marketed at 80-90 basis points over mid-swap by its lead manager, ANZ.
In the wake of two – one domestic and one offshore – senior-unsecured deals issued during the month of July, Bank of New Zealand (BNZ) says lower volume of domestic issuance in recent years is offset by a greater call on foreign-currency markets in line with issuer strategy. There has been no impact on demand from a one-notch Moody’s Investors Service (Moody’s) downgrade in May 2017, the issuer insists.