News
Rentenbank (AAA/Aaa/AAA) has added NZ$75 million (US$52.6 million) to its April 2024-maturity Kauri bond, a December 16 announcement revealed. According to KangaNews data, the line was introduced in April 2014 for volume of NZ$175 million and pricing of 43 basis points over mid-swap.
Liberty Financial (Liberty) printed A$500 million (US$367.7 million) in its third nonconforming residential mortgage-backed securities (RMBS) transaction of the year on December 16. Liberty Series 2016-3 has indicative volume of A$500 million (US$374.2 million) across a nine-tranche structure. The A$100 million A1a tranche and A$105 million A2 tranche priced flat to initial guidance of 75 basis points and 240 basis points over one-month bank bill swap rate (BBSW), respectively.
The latest Australian government sector borrower to announce a mid-year update to its funding task, Queensland Treasury Corporation (QTC), disclosed a requirement reduced by A$1.4 billion (US$1.05 billion) on December 14. QTC now expects to issue A$5.9 billion in 2016/17, with the reduction driven by an increase in royalty revenues compared with the June 2016/17 state budget forecasts.
On December 14, Eclipx Group (Eclipx) printed A$330 million (US$247.2 million) in its first asset-backed securities (ABS) transaction since 2014. The A$165 million class A2 tranche priced at 120 basis points over one-month bank bill swap rate (BBSW) - the tight end of initial guidance of 125-130. Final pricing on the A$31.02 million class B tranche came in at 230 basis points over one-month BBSW, against initial guidance in the low 200s area.
New South Wales Treasury Corporation confirmed an unchanged funding programme for 2016/17 in a mid-year update released on December 13. The state treasury corporation expects to issue A$4 billion (US$3 billion) of term debt in the current financial year, comprising A$4.7 billion of refinancing and a net A$700 million repayment of client term loans.
On December 16, Commonwealth Bank of Australia printed A$2 billion (US$1.47 billion) in its second residential mortgage-backed securities (RMBS) transaction of the year. The transaction was upsized from a launch volume of A$750 million. The largest, A$1.84 million A1a tranche priced at 111 basis points over one-month bank bill swap rate - the tight end of 110-113 guidance.
World Bank (AAA/Aaa) has tapped its November 2031 Kangaroo bond by A$75 million (US$56.2 million), according to a December 13 announcement. The tap issue priced flat to initial price guidance of 47 basis points over semi-quarterly swap. KangaNews data reveal the line was introduced in November this year for volume of A$135 million and pricing of 47 basis points over semi-quarterly swap.
Australian and New Zealand markets edged closer to wind-down mode in the first full week of December, although African Devlopment Bank priced its inaugural Kangaroo green bond. Elsewhere, KangaNews announced the winners of the KangaNews Awards 2016.
Following its first Kangaroo green bond, African Development Bank (AfDB) tells KangaNews issuing an Australian dollar denominated green bond is a function of its plans to engage new socially responsible investment (SRI) buyers. In addition, the issuer hopes its inaugural deal will contribute to the continuing growth of the green-bond market in Australia.
Adani Abbot Point Terminal (AAPT) has revealed the results of its offer to buy back its domestic fixed-rate notes. According to a December 8 announcement, out of the A$85 million offered the issuer will retire A$32.3 million (US$23.9 million) of its November 2018 domestic bonds. The company received an aggregate nominal amount of tenders in excess of A$100 million and the minimum purchase spread was set at 365 basis points over swap.
On December 8, the New Zealand Debt Management Office (NZDMO) revealed that it has increased the size of its domestic bond programme for 2016/17 to NZ$8bn (US$5.8 billion). Analyst response focuses on the positive economic story and the real surprise of the update – that the larger requirement will be funded via a planned inflation-linked bond issue.