News
A highlight of the week was Westpac Banking Corporation (Westpac)'s debut in the green-bond market. Westpac added a A$500 million (US$361.2 million) green-bond tranche to its latest five-year benchmark becoming the first issuer in Australia to include a green tranche alongside non-green notes. Meanwhile, Port of Brisbane became the first triple-B corporate issuer of the year.
Bank of China Sydney Branch (BoC Sydney) (A/A1/A) priced a new, A$500 million (US$360.9 million) three-year, senior-unsecured transaction on May 27. According to KangaNews data, BoC Sydney was most recently in the Australian domestic market in March 2015 when it priced A$1.4 billion of three-year notes. That transaction priced at 125 basis points over semi-quarterly swap and 125 basis points over bank bill swap rate respectively.
On May 27, Export Development Canada (EDC) (AAA/Aaa) priced a new, five-year benchmark Kangaroo transaction. According to KangaNews data, EDC most recently issued into the Australian market in May 2015. That four-year transaction was for volume of A$350 million (US$251.5 million) and pricing of 22 basis points over semi-quarterly swap.
On May 26, QPH Finance (BBB) – the financing arm of Port of Brisbane – launched and priced a new, seven-year transaction in the Australian market. Volume was A$250 million (US$179.9 million), from A$200 million at launch, and the deal priced at 180 basis points over semi-quarterly swap or 5 basis points inside its indicative level.
On May 26, CML Group (CML) (NR) priced a A$15 million (US$11 million) "retap" to its existing corporate bond facilities. The offer was made on the same terms as the A$25 million six-year issue placed by CML in March, with the senior-secured fixed-rate notes paying a fixed coupon of 8 per cent.
Westpac Banking Corporation (Westpac) (AA-/Aa2/AA-) priced its new five-year domestic benchmark on May 26, including a A$500 million (US$359.8 million) green-bond tranche. The proceeds of the green tranche – which forms the fixed-rate component of a combined fixed- and floating-rate deal – will be used to fund renewable-energy and green building projects in Australia, the issuer says.
DBS Bank (DBS) (AA-/Aa1/AA-) priced a new, three-year Kangaroo covered bond on May 25. Initial price guidance was in the area of 80 basis points over three-month bank bill swap rate (BBSW). According to KangaNews data, the most recent Kangaroo covered bond was issued by Canadian Imperial Bank of Commerce in April. That A$400 million (US$288 million) five-year transaction priced at 110 basis points over BBSW.
On May 25, BNP Paribas (A/A1/A+) priced a new Australian dollar tier-two transaction in EMTN format. ANZ, BNP Paribas, Nomura and Westpac Institutional Bank are leading the offer, which is expected to be rated BBB+/Baa2/A.
Kommunalbanken Norway (KBN) (AAA/Aaa) priced a new, seven-year Kauri bond on May 25. According to KangaNews data, KBN was most recently in the Kauri market in April issuing a NZ$100 million (US$67.1 million) tap to its May 2021 line. That transaction had pricing of 64 basis points over swap.
Australia's latest corporate issuer says it plumped for a euro deal because its requirements could only be met offshore. With an ongoing funding need front of mind, Aurizon Network (Aurizon) says it is also working hard to expand its investor base and to increase the liquidity in its outstanding paper.