The biggest issue in the New Zealand debt market has historically been shortage of domestic supply relative to a demand pool that has grown significantly in the KiwiSaver era. In September, BNZ and KangaNews convened their annual New Zealand roundtable with a specific goal in mind: to discuss whether the national infrastructure need, the emergence of bank securitisation and other factors can radically change the supply landscape.
On 12 November, Bank of New Zealand (BNZ) (AA-/A1) launched a new, five-year domestic deal with indicative price guidance of 100-105 basis points over mid swap. The self-led deal is expected to price on 14 November.
On 5 November, Chorus and Fonterra Co-operative Group (Fonterra) revealed plans for domestic deals to be offered to institutional and retail investors under same-class exemption rules.
On 31 October, Bank of New Zealand (BNZ) revealed plans to meet domestic debt investors in the week commencing November 5. A capital markets transaction may follow.
Extending its curve to 10 years was Housing New Zealand (Housing NZ)’s focus in its latest transaction. The issuer says conducive pricing facilitated its curve extension, which takes it into duration territory rarely seen in the New Zealand syndicated market.