While markets have remained liquid and tradeable throughout 2018, there can be little doubt that the period of almost unprecedented beneficial funding conditions that pervaded up to the end of 2017 has passed. At their annual global-markets roundtable in London in June, ANZ and KangaNews heard the latest thinking from key issuer and investor players.
Northern Territory Treasury Corporation (NTTC) (Aa2) launched a new, Australian dollar denominated benchmark bond due April 2027, on 22 January. The forthcoming transaction is being marketed at 66-68 basis points over the 10-year futures contract, equivalent to 75-77 basis points area over Australian Commonwealth government bond.
On 21 January, Northern Territory Treasury Corporation (NTTC) (Aa2) revealed plans for a new, Australian dollar denominated benchmark bond transaction, due April 2027. ANZ, National Australia Bank and UBS have been mandated as joint lead managers for the transaction.
The Kauri market saw its first deal of 2019 on 16 January when World Bank priced a NZ$400 million (US$270.7 million), five-year deal. Deal sources say offshore interest in Kauri deals has waned but robust domestic participation and low relative yield are accommodative to issuers.
Investa Commercial Property Fund (ICPF) has closed a A$170 million (US$122.3 million) green loan having tagged its entire asset portfolio against the Climate Bonds Initiative (CBI) low-carbon-building criteria emission thresholds. The facility is bilateral with ANZ, but the borrower says green loans should be able to find new liquidity and pave the way for more downline green-bond issuance.
ANZ Banking Group (ANZ) became the first non-UK bank to execute a sterling covered bond referencing an alternative benchmark rate on 11 January. The deal also takes Australian-issuer engagement with alternative reference rates a step further, as the longest maturity – and by far the largest – deal to reference an alternative benchmark printed by an Australian issuer to date.