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Transpower issues its first NZ deal for over three years [UPDATED] |
Transpower Finance (AA-/Aa2) will issue its NZ$50 million (US$29.14 million) 2019 bond on November 12 – the first time the New Zealand electricity transmission grid owner has issued in its home market since May 2005. The new deal priced at a tight 75 basis points over swap as it was initially sold as a six-month forward start issue in May.
According to Chris O’Neale, Wellington-based director in debt capital markets at lead manager ANZ, the latest transaction was issued off wholesale documentation and therefore distributed to an institutional investor base. O’Neale describes the transaction as an opportunity to take advantage of specific institutional demand.
The pricing of the Transpower deal appears competitive at 75 basis points over swap, even though its spread was set when originally placed in May. Dunedin City Treasury (AA-) was the last issuer with the same rating as Transpower to issue in New Zealand, offering the same price for a four-year deal on April 4 this year, while more recently Fonterra (A+/AA-) paid 170 basis points over swap for 2014 maturity debt on October 9.
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Last Updated ( Tuesday, 11 November 2008 )
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