News

Municipality Finance (MuniFin) (AA+/Aa1) mandated an increase to its July 2027 Kangaroo late in the Australian day on 26 July. The forthcoming deal is for minimum volume of A$25 million (US$20 million) and is being marketed at 74.5 basis points over government bonds or 62 basis points over swap, according to lead manager Nomura.

International Finance Corporation (IFC) (AAA/Aaa) mandated the first green bond in the Kauri market on 26 July. The 10-year deal is expected to launch in the near future, according to lead managers ANZ and BNZ.

Motor Trade Finance (MTF) revealed on 26 July that it is preparing to meet asset-backed securities (ABS) investors in a series of meetings in New Zealand in early August. An ABS transaction may follow, according to the meetings’ arrangers Commonwealth Bank of Australia and Westpac Institutional Bank.

Issuers and intermediaries in the high-grade Kauri market say pricing and demand fundamentals should be supportive of an improved H2 issuance outcome. Despite a slow period for new issuance of late, market users say the Kauri asset class has continued to develop in the background.

Deal sources in L-Bank’s third New Zealand dollar deal, and its first at a 10-year maturity, suggest its completion is the fruit of persistence and ongoing market engagement by the issuer. The transaction attracted robust domestic support, including one new investor to L-Bank’s bonds in any currency.