News
DBNGP Finance (DBNGP) (BBB-/Baa3) priced a new curve-extending transaction in the Australian domestic market on September 24. The new six-year line is for a volume of A$100 million (US$88.8 million) and had indicative price guidance in the area of 160 basis points over semi-quarterly swap.
A rare public residential mortgage-backed securities (RMBS) issue is priced in the New Zealand market for Resimac with expected ratings assigned to the seven-tranche prime RMBS issue on September 23. The only two other public securitisations in New Zealand in 2014-to-date – for Fisher & Paykel Finance (Fisher & Paykel) and Motor Trade Finances (MTF) – were of asset-backed securities (ABS).
Kommunalbanken Norway (KBN) (AAA/Aaa) launched and priced a new four-year floating-rate note (FRN) in the Australian market on September 24. According to KangaNews data, KBN has previously issued one FRN in the Kangaroo market. That A$200 million (US$176.7 million), four-year transaction was launched in January 2011 and, after an impending October 2014 redemption, is KBN's next scheduled Kangaroo maturity.
Capital-markets activity in the third week of September was limited to three Kangaroo deals on one side of the Tasman, and a return to issuance for Auckland Council on the other. Elsewhere, the bid for 49 per cent of Yieldbroker by the Australian Securities Exchange valued the platform at more than A$130 million (US$116.3 million) and Aurizon talked funding strategy.
The Australian Securities Exchange (ASX) has made an offer to acquire a 49 per cent stake in Yieldbroker, with a bid which values the OTC trading platform at more than A$130 million (US$116.4 million). The bid has the support of both companies' boards, according to a joint statement, but is subject to "satisfactory acceptances" from Yieldbroker's 12 existing shareholders – all intermediary banks.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) mandated and priced a tap to its February 2025 Kangaroo bond on September 17. The line was originally launched in August, for a volume of A$450 million (US$408.7 million) at pricing of 57.5 basis points over Australian government bond (ACGB).
On September 17, Province of Québec (Québec) (A+/Aa2/AA-) made a quick return to the Kangaroo market launching and pricing a tap to its 2025 Kangaroo bond. Québec priced the first tap to this line less than a week ago.
Aurizon Network (Aurizon) has provided KangaNews with an insight into its ongoing funding strategy in the wake of the issuer's second-ever capital markets transaction, a €500 million (US$647.9 million) 10-year deal. With more debt still to term out, Aurizon is keeping its options open for its future debt-raising plans – but says a second domestic deal is less likely to be its very next step unless its capacity for triple-B names takes another step forward.
International Finance Corporation (IFC) (AAA/Aaa) priced a tap of its July 2019 Kangaroo bond on September 16. According to KangaNews data, this is the first tap of the line, which was launched in July for a final volume of A$750 million (US$677.6 million) at a spread of 44 basis points over Australian government bond (ACGB).
The largest true-corporate bond issue in the Australian domestic market for nearly a year reinforces Australia's position in the funding toolkit for global credit issuers, lead managers say. This is also demonstrated by the fact that the average number of investors participating in these transactions is growing.
Coffey International (Coffey) priced a wholesale, senior-unsecured, corporate bond issue for A$40 million (US$35.9 million) on September 10. The five-year floating-rate note issue priced in line with indicative coupon levels of of 465 basis points over 90-day bank bill swap rate and will be used to repay Coffey's existing bank debt.