News
KommuneKredit (AAA/Aaa) launched an increase to its November 2026 Kangaroo bond on 10 May. According to the forthcoming transaction’s lead manager, Deutsche Bank, the tap is being marketed at 70 basis points over semi-quarterly swap.
If socially responsible fixed-income asset classes, and in particular green bonds, become a consistent component of the Australian debt market it seems likely that March-April 2017 will be looked back on as a landmark period. Issuance volume hit an all-time high, including a clutch of breakthrough and innovative transactions.
Genesis Energy (BBB+/S&P) launched an offer of up to NZ$225 million (US$41 million) 30-year subordinated notes to institutional investors and New Zealand retail investors on 10 May, according to an announcement lodged with the NZX. The new offer, which is rated BB+ and has a final maturity of 9 June 2047, has an indicative margin range of 275 to 295 basis points over five-year mid-swap.
On 10 May, African Development Bank (AfDB) (AAA/Aaa) mandated a tap to its January 2025 Kangaroo bond. The forthcoming increase will be for minimum of A$25 million (US$18.4 million) and is being marketed at 50 basis points over semi-quarterly swap or 52.75 basis points over the Australian Commonwealth government bond.
Lendlease Real Estate Investments as responsible entity of Australian Prime Property Fund Retail (APPF Retail) (A+ by S&P) revealed on 10 May that it has mandated a potential seven-year domestic deal. Initial price talk is in the area of 130 basis points over semi-quarterly swap. Commonwealth Bank of Australia and National Australia Bank are leading the forthcoming transaction, which is expected to launch on 11 May.
The Australian Office of Financial Management (AOFM) confirmed an expected gross Treasury bond issuance task of A$80 billion (US$58.8 billion) for 2017/18 following delivery of the Australian federal budget on May 9. The gross figure includes A$34 billion of net new issuance, while a December 2016 update forecast gross and net issuance totals of A$100 billion and A$74 billion for 2016/17.
Australia’s major banks are set to pay more for their wholesale funding – both short and long term – under a major-bank levy introduced by the 2017/18 Commonwealth budget. The government estimates the levy, which amounts to 6 basis points on all major-bank liabilities excluding additional tier-one instruments and most deposits, will raise A$6.2 billion (US$4.5 billion) over four years.
