News
On March 14, Genesis Energy (BBB+) priced a new, six-year, fixed-rate senior bond. According to KangaNews data, the new issue will be Genesis Energy's first bond deal issued in the domestic public market since March 2013.
The New Zealand market saw moderate deal flow this week, including a Nordic Investment Bank Kauri bond, the first since KfW Bankengruppe's five-year deal in early February. Meanwhile, Pepper Australia and ING Australia announced plans to engage with RMBS investors.
Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney)'s (AA-/Aa1/AA-) new domestic four-year senior-unsecured issue was priced on March 10, the day the transaction was launched and a day after mandate. According to KangaNews data, OCBC Sydney most recently visited the domestic market in November last year when it printed a A$400 million (US$299.4 million) November 2018 floating-rate note. That deal priced at 86 basis points over bank bill swap rate (BBSW).
Liberty Financial (Liberty) has priced its first residential-backed mortgage securities (RMBS) transaction of 2016 with expected ratings assigned to Liberty Series 2016-1 Trust on March 7. The transaction, which is a securitisation of prime and nonconforming residential mortgages originated by Liberty, has an aggregate volume of A$300 million (US$224.3 million) and a nine-tranche structure.
The Reserve Bank of New Zealand (RBNZ) cut the official cash rate (OCR) by 25 basis points for the second time in three meetings on March 10. At 2.25 per cent, the OCR at its current level is the lowest on record for the country. Analysts almost universally agree that the move was a surprise, but they also admit it is hard to argue with the RBNZ's logic.
The new four-year domestic transaction mandated by Bank of Tokyo-Mitsubishi UFJ Sydney Branch (BoTM Sydney) (A+/A1) on March 7 launched and priced a day later, for final volume of A$500 million (US$371.6 million).
Westpac Banking Corporation (Westpac) (AA-/Aa2/AA-) launched and priced a long three-year, senior-unsecured deal on March 8, in the issuer's first local senior benchmark since October last year.
On March 8, Rentenbank (AAA/Aaa/AAA), priced an increase to its May 2026 Kangaroo bond. According to KangaNews data, the transaction is Rentenbank's third foray into the Australian market in 2016 and the fourth tap to its longest outstanding Australian dollar line.
On March 8, ING Bank Australia (ING Australia) announced plans to meet debt investors to discuss its IDOL Australian RMBS programme. According to lead managers ANZ, ING, J.P. Morgan, Macquarie Bank and National Australia Bank, an Australian dollar capital markets transaction under this programme may follow.
International Finance Corporation (IFC) (AAA/Aaa) priced an increase to is February 2021 Kangaroo deal on March 8. The line was first introduced in July last year and was most recently increased in January, by A$300 million (US$222.3 million) at 56.5 basis points over the Australian Commonwealth government bond.
On March 8, Nordic Investment Bank (AAA/Aaa) priced a new five-year bond in New Zealand. According to KangaNews data, the transaction is the first Kauri deal to come to the market since KfW Bankengruppe issued a five-year line on February 4.