News
New South Wales Treasury Corporation (TCorp) (AAA/Aaa) announced on November 18 that it is preparing to launch its inaugural Dim Sum bond. This will be the debut issue of RMB-denominated bonds by an Australian sovereign or semi-government issuer and follows the free trade agreements signed by the Australian and Chinese governments on November 17.
Total Capital International (Total) (AA-/Aa1), the issuing entity of Total, priced its debut Kangaroo deal on November 18. The mandate represents a landmark for the Australian dollar market, as KangaNews understands the borrower has been close to issuing its inaugural Kangaroo on a number of occasions stretching back to at least 2007.
Export-Import Bank of Korea (Kexim) (A+/Aa3/AA-) says cost effectiveness when compared to other offshore markets and good availability of liquidity tempted it back to the Kangaroo market. The issuer priced a new five-year, dual-tranche Kangaroo transaction on November 14 in what was its second visit to Australia is 2014 and its third ever.
The repeal of the legislation that underpinned the official direction given to the Australian Office of Financial Management (AOFM) by government leaves it unable to conduct transactions in its residential mortgage-backed securities (RMBS) portfolio – despite apparent demand from third-party investors.
New Zealand Post (NZ Post (A+ by S&P) announced on November 17 that it set the interest rate for its subordinated notes at 6.35 per cent for the five years until the new reset date. The rate is in line with the 200 basis point margin and minimum interest rate set by the borrower on September 30. Trading of the notes is expected to resume on November 18, with NZ$200 million (US$175.2 million) of notes remaining on issue.
Liberty Financial (Liberty) priced its second Australian dollar nonconfirming residential mortgage-backed securities (RMBS) issue of 2014 on November 14. The transaction – Liberty Series 2014-2 Trust – was upsized from its indicative volume of A$400 million (US$346.7 million) across eight tranches.
Australia's domestic and Kangaroo markets continued to be fertile ground for new deals during the week under review with A$3.15 billion (US$2.73 billion) of volume priced in the Australian public domestic market alone. Supranational, sovereign and agency sector Kangaroo flow continues, including four deals priced in two days.
A third mid-curve dated Kangaroo transaction priced in two days on November 14 , as Inter-American Development Bank (IADB) (AAA/Aaa) priced an increase to its September 2017 line. According to KangaNews data, the bond in question was introduced in September 2012 and has been increased to A$1.125 billion (US$981.2 million) via four taps prior to the latest mandate.
The Export-Import Bank of Korea (Kexim) (A+/Aa3/AA-) priced a new 5.5-year Kangaroo bond on November 14. According to KangaNews data, the forthcoming deal is the second time the borrower has visited the Australian dollar market in 2014, and third time ever.
Export Development Canada (EDC) (AAA/Aaa) priced an increase to its January 2019 Kauri line on November 13. According to KangaNews data, the deal is the first tap of the line which was introduced at a volume of NZ$300 million (US$236.3 million) in January this year with pricing of 69 basis points over New Zealand government bonds.