News
On May 17, Westpac Banking Corporation (Westpac) revealed plans to launch its first tier-one offer of 2016. According to an Australian Securities Exchange (ASX) announcement, Westpac Capital Notes 4 has indicative issue volume of A$750 million (US$551 million) and margin range of 490-510 basis points over bank bill swap rate (BBSW).
Speaking exclusively to KangaNews, Tim Pallas, treasurer of the state of Victoria, discusses the state government's decision to place its infrastructure programme on a 10-year cycle to reduce political risk. Pallas also offers his insights into Victoria's fiscal strength, how the state government thinks about financial headroom and funding issues including the potential role of green bonds.
In the wake of New Zealand's fifth corporate deal of 2016, and the country's largest non-financial corporate transaction since 2009, market participants involved in the transaction suggest that both retail and institutional investor demand remain supportive of further corporate supply.
The Kangaroo market had a burst of low-volume action this week with seven new deals priced, inclduing two taps printed by KfW Bankengruppe. Meanwhile, Bank of Queensland continued the steady flow of Australian regional bank issuance pricing A$600 million (US$438 million) of five-year, floating-rate notes.
On May 13, Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa1) priced a tap to its May 2046 maturity Australian dollar bond. According to KangaNews data, Tascorp introduced this line on April 22 for volume of A$55 million (US$40.2 million) and pricing of 110 basis points over Australian Commonwealth government bond.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced a A$300 million (US$218.9 million) increase to its existing February 2021 Kangaroo bond on May 13. The tap issue comes hard on the heels of a A$150 million increase to KfW's September 2026 Kangaroo line which priced at 53 basis points over swap on May 10.
Following benchmark senior-unsecured issuance in the domestic and euro markets in the wake of its half-year results announcement, National Australia Bank (NAB) revealed on May 13 that it plans to meet debt investors to discuss its National residential mortgage-backed securities (RMBS) programme over the following two weeks.