News
Rabobank Australia Branch (Rabobank Australia) (A+/Aa2/AA-) launched and priced a new floating-rate senior-unsecured 2.5-year benchmark deal in the Australian market.
ANZ Banking Group (ANZ) (AA-/Aa2/AA-) launched and priced a new senior-unsecured, five-year benchmark transaction in the Australian market on April 9. The self-led floating-rate note (FRN) is ANZ's first senior-unsecured issue in the local market in 2015.
At its third monetary policy meeting of 2015 the Reserve Bank of Australia (RBA) surprised slightly more analysts than had correctly predicted its decision. Despite electing not to cut in April, analysts now point to ongoing caution around monetary policy on the part of the RBA – though some see signs in the bank's statement which they believe may mean a reduced likelihood of more cuts to come.
Deal flow slowed in the week leading up Easter, with only four new deals in Australia. Favourable conditions saw some Australian borrowers go offshore with Telstra and Scentre Group accessing US dollar and sterling markets.
New South Wales Treasury Corporation (TCorp) (AAA/Aaa) completed the consolidation of its 2016 floating-rate note (FRN) into a new 2020 line, having added an additional A$75 million (US$56.8 million) to the transaction overnight. The final total of notes repurchased and replaced is A$1.9 billion, leaving A$600 million outstanding in the 2016 FRN.
Scentre Group (Scentre) (A/A1) returned to sterling issuance on March 31, for the second time since the entity was created in June last year. The follow-up transaction has a notably shorter maturity than the first, a development which highlights a notable change in the UK investment landscape according to issuer and leads.
On April 1, Rentenbank (AAA/Aaa/AAA) priced a new April 2021 Kangaroo bond in what is the issuer's ninth visit to the market in 2015. According to KangaNews data, Rentenbank priced its most recent Kangaroo transaction on March 10. That A$200 million (US$153.2 million) tap to its 2020 line priced at 19 basis points over Australian government bond.
ABN AMRO Bank (ABN AMRO) (A/A2/A+) priced a new benchmark senior-unsecured five-year Australian dollar transaction on April 1. According to KangaNews data, the borrower last visited the Kangaroo market in January 2014. That A$400 million (US$306.1 million) fixed- and A$100 million floating-rate dual-tranche deal had pricing of 135 basis points over semi-quarterly swap and bank bills.
A change in market economics compared with prior norms, and a resurgence of solid issuance conditions, attracted a clutch of Australian-origin issuers to the US 144A market in recent weeks. The latest saw solid demand and keen pricing, although lead managers warn these conditions might be short lived – and recommend issuers prepare to be nimble in their market selection.
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