News
International Finance Corporation (IFC) (AAA/Aaa) priced a tap to its February 2021 Kangaroo bond on December 8. According to KangaNews data, the deal is the first increase to this line, which was introduced in July 2015 in a A$300 million (US$219.8 million) transaction with pricing of 56.75 basis points over Australian government bond.
South Australian Government Financing Authority (SAFA revealed on December 8 that its funding requirement for 2015/16 has fallen by A$500 million (US$363.1 million). The announcement, which revises SAFA's funding requirement for the current financial year to A$3.7 billion, marks another sign of easing issuance in the Australian semi-government sector.
KangaNews announced the winners of the house, deal and issuer categories in the KangaNews Awards for 2015 and participants at the Australian Securitisation Forum's annual conference shared further insights around the industry's new APS 120 draft. Elsewhere, deal flow was limited.
Speaking at Australian Securitisation 2015 – the annual conference of the Australian Securitisation Forum (ASF) – market participants confirmed that the revised draft regulatory regime for the industry marks a significant step towards a larger market for Australian issuers. The latest iteration of APS 120 was released on November 26, and the Australian Prudential Regulation Authority (APRA)'s Sydney-based general manager, Patrick Brennan, addressed the conference on December 1.
Spark New Zealand (Spark) priced a new, seven-year, domestic issue on December 4. According to KangaNews data, Spark most recently issued in the New Zealand market in March, pricing NZ$100 million of seven-year bonds at 85 basis points over swap.
On December 2, Province of Manitoba (Manitoba) (AA/Aa2) priced a new, 10.5-year Kangaroo bond. According to KangaNews data, the deal is Manitoba's fourth Kangaroo-market foray for 2015.
AMP Bank (AMP) (A+/A2) mandated a new Australian dollar transaction on December 2, in what will be the issuer's first senior-unsecured domestic deal of 2015. According to KangaNews data, AMP last issued in this format in May 2014, pricing a A$500 million (US$366.2 million), four-year deal with pricing of 87 basis points over bank bill swap rate (BBSW).
AMP has completed its latest listed tier-one transaction, closing the transaction at A$267.5 million (US$195.9 million) on November 30. The issuer had already increased the size of its transaction to A$230 million from A$200 million following the deal's bookbuild which took place in October.
New South Wales Treasury Corporation's buyback put the issue of limited semi-government bond supply in the spotlight while the Australian Prudential Regulation Authority's APS 120 draft offers securitisers significant concessions. Meanwhile deal flow continued at a steady pace.