News
The sub-benchmark volume requirements of Australia Pacific Airports Corporation (Melbourne Airport) did not negatively impinge on the demand or pricing for its second-ever euro deal despite softer market conditions around the launch window, leads say. Indeed, in an environment where investors have cash to put to work, deal sources insist sub-benchmark euros are a more viable option than ever.
Citigroup is planning a series of investor meetings ahead of a potential residential mortgage-backed securities transaction. The forthcoming deal could be the first issuance off Citibank Australia's mortgage securitisation vehicle, Securitised Australian Mortgage Trust, since the first half of 2011.
Australia's first collective vehicle for funding local authorities is closing in on a market debut, with minimum volume of A$150 million (US$131.6 million) targeted. The Local Government Funding Vehicle (LGFV), which aims to provide lower-cost, capital-markets funding for councils in the state of Victoria, received a rating on October 9 having already roadshowed to institutional investors – and could launch a debut transaction in the near future.
*Registrations are still open for the KangaNews's 4th Annual Corporate debt summit on October 16. An up-to-date agenda, including confirmed keynote speakers, and instructions on how to register can be found here.* Limited activity was seen on both sides of the Tasman Sea during the week under review, including from Fonterra Co-operative Group, which added a new dual-tranche fixed- and floating-rate transaction to the mid-point of its domestic curve.
The developer of the latest fixed-income benchmark indices covering the Australian bond market to be launched says the product suite was developed in direct response to demand from superannuation funds. Benchmarking independence sets the product apart from its peers, the index creator insists.
On October 8, International Finance Corporation (IFC) (AAA/Aaa) mandated an priced the first tap to its 2025 Kangaroo line. According to KangaNews data, the line was introduced on September 26 this year at a volume of A$250 million (US$219.7 million) and pricing of 48.5 basis points over Australian government bond.
In this month's commenty in the wake of the Australian cash-rate decision, KangaNews columnist, Warren Bird, once again reviews the Reserve Bank of Australia (RBA)'s October 7 statement to reveal the key changes according to his rigorous three-category analysis of the reserve bank's thinking.
South Australian Government Financing Authority (SAFA) (AA/Aa1) priced an increase to its November 2023 fixed-rate domestic benchmark bond on October 7. According to KangaNews data, the deal is the borrower's first syndicated tap of the line which was introduced on April 15 this year at a volume of A$450 million (US$394.6 million) and pricing of 56.25 basis points over Australian government bond.
*Registrations are still open for the KangaNews's 4th Annual Corporate debt summit on October 16. An up-to-date agenda, including confirmed keynote speakers, and instructions on how to register can be found here.* Activity slowed significantly during the week under review with just one Kangaroo – a A$150 million (US$130.3 million) tap to KfW Bankengruppe's 2025 line – and one A$400 million Australian securitisation deal priced by Pepper Australia.