News
Meridian Energy (BBB+ by S&P) priced a new, seven-year deal in the New Zealand market on March 7. An announcement lodged with the NZX on the deal's launch date of March 1, revealed the volume of the forthcoming transaction to be up to NZ$100 million (US$66.1 million) and the indicative margin range was 160-175 basis points over mid-swap.
On March 7, Pepper Australia mandated a series of residential mortgage-backed securities (RMBS) debt investor meetings in Australia. According to joint lead managers Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank, a nonconforming RMBS transaction may follow.
Deal flow trickled through in Australia, with the securitisation market in particular continuing to show signs of life. Meanwhile, AusNet Services issued the first-ever Singapore dollar hybrid bond for an Australian corporate.
On March 4, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced a new, 10-year transaction in the Australian market. According to KangaNews data, the transaction is KfW's second foray into the Kangaroo market in 2016, after a A$500 million (US$364.1 million) five-year line priced at 47 basis points over mid-swap issued on January 13.
Volkswagon Financial Services Australia (VWFS) priced its third Australian asset-backed securitisation (ABS) transaction on March 4, with expected ratings assigned to the Driver Australia Three Trust automotive-backed floating-rate notes on March 1. The transaction has a four-tranche structure, with a total volume of A$531 million (US$391.5 million).
Commonwealth Bank of Australia (CommBank) has priced its first residential mortgage-backed securities (RMBS) transaction of 2016, with expected ratings assigned to the notes – Medallion Trust Series 2016-1 – on March 2.
Issuer and lead managers on AusNet Services (AusNet)'s S$200 million (US$143.4 million) 60.5-year non-call 5.5-year Reg S hybrid, priced on February 29, say the Singapore market met the borrower's cost-of-capital need at the most efficient margin – outperforming other global options.
On March 2, Western Australian Corporation (WATC) (AA+/Aa2) mandated and priced a new, syndicated five-year Australian dollar benchmark floating-rate note (FRN). According to KangaNews data, WATC issued aggregate syndicated volume of A$3.2 billion (US$2.2 billion) in 2015, most recently printing a A$250 million March 2019 FRN in December at 22 basis points over bank bill swap rate.
Credit Suisse Sydney Branch (Credit Suisse Sydney)'s (A/A2/A) new five-year Australian dollar transaction priced on March 2, following a mandate announcement on February 29. According to KangaNews data, the forthcoming transaction will be the bank's first domestic deal of 2016.
On March 2, ASB (AA-/Aa3/AA-) priced a new, self-led March 2019 maturity senior domestic bond. The floating-rate deal is ASB's first domestic benchmark issue since November last year, and the first local senior bond from a big-four New Zealand bank in 2016, according to KangaNews data.
The Reserve Bank of Australia (RBA)'s decision to keep the cash rate on hold – at 2 per cent – at its March 1 meeting drew little surprise from the analyst community. However, views differ around expectations for the RBA's future policy stance. Some believe high hurdles to easing will provide the RBA with little opportunity to lower the cash rate in 2016, while others argue that soft demand and low inflation might cause the RBA to pull the trigger.