News
Bendigo and Adelaide Bank (BEN) (A-/A2/A-) priced a new five-year transaction on April 13, at 146 basis points over bank bills from an indicative range of 145-148 basis points over bills. The issuer also revealed that it repurchased A$151 million of its August 2016 notes as part of the transaction.
On April 7, Korea Development Bank (KDB) (AA-/Aa2/AA-), priced its first-ever Kauri transaction. According to KangaNews data, the deal is the first Kauri issued without a triple-A rating since Telstra Corporation printed NZ$100 million (US$67.7 million) of fixed-rate notes in May 2010. KDB and its leads are cautiously optimistic about the prospects for further Kauri issuance diversity in future.
Having launched a tap to its January 2021 Kangaroo on April 11, later the same day World Bank (AAA/Aaa/AAA) added a new, 10.5-year benchmark Kangaroo line to the bonds being offered. Both deals were priced on April 12. According to KangaNews data, the supranational introduced the 2021 line in January this year in a A$550 million (US$416 million) transaction with pricing of 42 basis points over semi-quarterly swap. The forthcoming transaction will be the first tap to the line.
On April 12, Canadian Imperial Bank of Commerce (CIBC) (A+/Aa3/AA-) priced a new, Australian-dollar covered bond, which has been assigned expected ratings of Aaa by Moody's Investors Service and AAA by Fitch Ratings Services.
Commonwealth Bank of Australia (CommBank) (AA-/Aa2/AA-) priced a new, senior-unsecured deal on April 11, in what will be its second domestic benchmark issue of the year.
On April 11, Airservices Australia (AsA) (AAA) mandated ANZ and National Australia Bank to arrange a series of debt investor meetings in Asia beginning the week of April 25 and in Australia beginning the week of May 2, with a domestic bond transaction potentially to follow. The forthcoming meetings will be the first pre-deal investor update of 2016 from a rated corporate issuer.
BPCE (A/A2/A) plans to conduct an Australian and Asian investor call on April 12, the issuer has revealed. According to KangaNews data, BPCE was most recently in the Kangaroo market in October 2015, pricing a A$175 million (US$131.8 million) tier-two transaction. These fixed-rate notes priced at 320 basis points over semi-quarterly swap.
On April 8, litigation funder IMF Bentham (NR) priced a new, long four-year bond for volume of A$32 million (US$24.1 million) and an ability to accept oversubscriptions of up to a further A$20 million.
CML Group (CML) (NR) has become the third Australian mid-cap corporate issuer to return to the bond market for a second bond issue. On March 8, CML revealed it was targeting a new A$25 million (US$18.7 million), six-year bond. According to the deal's lead manager, FIIG Securities, CML's notes will pay a coupon of 8 per cent.
A deal highlight during the first week of April came from Korea Development Bank, which priced a debut, NZ$200 million (US$135.7 million), Kauri bond. The 2019 line is the first Kauri issued without a triple-A rating since May 2010. Meanwhile, issuance in the Australian market was steady.