Deal and ratings review, week ending September 30 2016

Qantas Airways returned to the Australian domestic market printing A$250 million (US$190.8 million) of 2023-maturity notes on September 29 and following up with A$175 million of 10-year notes a day later. AAI - Suncorp Group's insurance subsidiary - printed A$330 million of 26-year non-call six-year notes, garnering a substantial middle-market bid. Meanwhile, Firstmac's latest residential mortgage-backed issue was upsized to A$600 million

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Post-deal insights: AAI’s distribution further emphasises middle-market bid emergence

The extent of middle-market demand for AAI’s recent tier-two offering took even the issuer and its lead managers somewhat by surprise, they tell KangaNews. AAI – Suncorp Group (Suncorp)’s wholly owned insurance subsidiary – capped volume on its most recent trade at A$330 million (US$251.6 million) although the deal was multiple times oversubscribed.

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Qantas prints A$175 million in a new 10-year domestic deal

Qantas Airways (Qantas) (BBB-/Baa3) printed A$175 million (US$133.5 million) in a new, 10-year Australian dollar-denominated fixed-rate transaction on September 30. Initial price guidance on the transaction was 290 basis points over semi-quarterly swap. 

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Air New Zealand prepares its return to the NZ domestic market

On September 30, Air New Zealand announced it is considering making an offer of up to NZ$75 million (US$54.3 million) of senior-unsecured fixed-rate notes. According to a NZX announcement, proceeds from the forthcoming offer will be used for general corporate purposes, including partial repayment of Air New Zealand’s existing bonds maturing on November 15 this year. Both institutional and retail investors are able to take part in the offer.

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DWPF tops up its June 2025 domestic line [UPDATED]

On September 29, Dexus Wholesale Property Fund (DWPF) (A by S&P) printed a A$65 million (US$49.8 million) increase to its June 2025 maturity domestic line. Initial price guidance on the tap was 165 basis points over semi-quarterly swap, the transaction’s lead manager – Westpac Institutional Bank – revealed earlier on September 29. According to KangaNews data, the June 2025 line was introduced in June last year for volume of A$50 million and pricing of 155 basis points over swap.

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Latest Issue 2016 August-September

Lastest Issue

Australian dollar deals drift away from the Kangaroo market. Blockchain: what bond market participants need to know. Event reports: KangaNews NZDCM Summit and Fixed Income Beyond the Institutional Sector. The rise of Japanese banks as Australian intermediaries.