News
Deal activity continued to flourish on both sides of the Tasman Sea during the first week of November. In Australia five senior-unsecured and two securitised deals priced while the New Zealand Debt Management Office's new deal kept flow ticking over in New Zealand. Most notably, Australia's new collective local-government funding entity priced its debut dual-tranche domestic deal.
On November 7, Crown Group Finance (Crown) (BBB/Baa2/BBB) priced a new five-year, fixed-rate transaction in the domestic market. Indicative pricing for the forthcoming issue was in the area of 155 basis points over semi-quarterly swap.
The Local Government Funding Vehicle (LGFV) (Aa2) priced its debut deal in the Australian market on November . The five- and seven-year notes priced in line with indicative pricing of 75 basis points over swap and 90 basis points over swap respectively.
Credit Suisse Sydney Branch (Credit Suisse Sydney) (A/A1/A) priced a new three-year Australian dollar benchmark transaction on November 7. According to KangaNews data, the deal is the second time the borrower has issued in the domestic market this year.
The New Zealand Debt Management Officepriced a new September 2035 maturity inflation-linked bond on November 6, confirming plans to issue NZ$1.0-1.5 billion (US$778.3 million – 1.2 billion) by November 6. The issue extends the NZDMO's inflation-linked curve beyond its current longest maturity of 2030.
On November 5, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced an increase to its January 2019 Kangaroo bond. This is the second increase to the line which was originally launched in January this year for a volume of A$700 million (US$611.7 million) and pricing of 32 basis points over the Australian government bond (ACGB).
On October 31, Toronto Dominion Bank (TD Bank) priced a five-year Australian dollar denominated, Canadian legislative covered-bond transaction backed by Canadian prime residential mortgages. The issuer cites a need for increased investor diversification as the driver behind its debut Kangaroo issue.
ANZ Banking Group (ANZ) (AA-/Aa2) launched a self-led, five-year, Australian dollar-denominated, dual-tranche, senior-unsecured benchmark deal on November 5, closely after it released its full-year results. According to KangaNews data, the forthcoming deal will be the fourth time the borrower has issued in the domestic market this year.