News
On August 25, the New Zealand Debt Management Office (NZDMO) (AA+/Aaa/AA+) printed NZ$2 billion (US$1.46 billion) in its new, April 2037-maturity syndicated bond. The NZDMO revealed in a prior announcement that it expected to raise NZ$1-2 billion, with the transaction capped at NZ$2 billion. Initial price guidance on the syndication was in the area of 25-31 basis points over the 14 April 2033 nominal bond.
On August 24, Greater Bank (BBB+) priced a new, three-year domestic transaction. According to KangaNews data, Greater Bank issued a A$25 million (US$19.1 million) three-year floating rate note in June this year, at 160 basis points over bank bill swap rate.
On August 23, Dexus Finance (Dexus) (A-/A3) priced a A$50 million (US$38.2 million) increase to its 2022-maturity senior-unsecured domestic line. Initial price guidance on the increase was in the area of 155 basis points over semi-quarterly swap.
International Finance Corporation (IFC) (AAA/Aaa) priced a A$125 million (US$95.5 million) increase to its July 2026 Kangaroo bond on August 23. According to KangaNews data, the line was introduced in January this year for volume of A$125 million and pricing of 55.5 basis points over Australian Commonwealth government bond (ACGB). The line was most recently tapped on August 5, for A$20 million at 55.75 basis points over ACGB.
On August 19, Province of British Columbia (British Columbia) (AA/AAA) priced a new, 10.5-year Kangaroo transaction. According to KangaNews data, British Columbia's most recent previous foray into the Kangaroo market was in July 2014, when it printed A$300 million (US$231.3 million) of 10-year notes at 67.75 basis points over Australian Commonwealth government bond.
Moody's Investors Service has this week changed the outlook on its Aa2 rating on all four Australian major banks to negative to reflect challenges in the banks' operating environment. Meanwhile, Australian dollar issuance has been moderate. Suncorp-Metway printed A$350 million (US$267.1 million) in a curve-extending covered bond while South Australian Government Financing Authority issuing A$1 billion in its latest syndicated deal.
On August 18, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced a A$150 million (US$115.5 million) increase to its existing September 2026 Kangaroo bond. According to KangaNews data, the line was introduced in March this year for volume of A$200 million with pricing of 66 basis points over Australian Commonwealth government bond (ACGB). The line was subsequently tapped in May this year for A$150 million, at 56 basis points over ACGB.
BMW Finance, a wholly guaranteed subsidiary of BMW (A+/A2), priced a new Australian dollar transaction issued off its EMTN programme on August 17. The four-year transaction, which has ANZ and TD Securities as its leads, is to be listed on the Luxembourg stock exchange.