TCorp to go big on infrastructure funding
On 18 June, following the release of the New South Wales (NSW) state budget on the same day, New South Wales Treasury Corporation (TCorp) revealed a borrowing requirement for the 2019/20 financial year of A$13.3 billion (US$9.1 billion). The requirement represents a A$1.4 billion increase from the estimate at the 2018/19 budget.
PACCAR Financial’s quick return timed for domestic market boost
A dearth of public corporate issuance and clarity around interest-rate direction provided a window of opportunity for PACCAR Financial to bring a quickfire return to the Australian market. The transaction, the issuer’s second in nine months, was two-times subscribed based on a final book in excess of A$320 million (US$222.6 million).
RMBS issuers flock to liquid and competitive market
Australia’s residential mortgage-backed securities (RMBS) market underwent a May and June renaissance with A$7.6 billion (US$5.3 billion) of primary supply priced. With more deals in the pipeline, intermediaries say liquidity dynamics continue to support the influx of deals. Meanwhile, a sentiment shift on the housing market is set to provide ancillary support.
QTC’s immediate requirement down, but rising in forward estimates
On 11 June, following the release of the Queensland state budget, Queensland Treasury Corporation (QTC) revealed a borrowing programme for the 2019/20 financial year of A$9.9 billion (US$6.9 billion). The requirement is a A$700 million reduction from the forward estimate in the 2018/19 forecast.
Local market continues to support NEXTDC’s growth
Ongoing institutional support for unrated NEXTDC has allowed the returning issuer further to bolster its capital-requirement capabilities for the future. Capacity issues are not yet a valid concern, however the issuer is making plans for when unrated supply may eventually outpace demand in the local market.