Asian demand has been a consistent component of the Australian dollar credit market in recent years and – to the surprise of some – has emerged from the first phase of the COVID-19 crisis as a still-reliable bid. Yield and credit quality factors are crucial, as the relative stability Australian credit offers attracts consistent demand.
On 3 February, International Finance Corporation (IFC) (AAA/Aaa) launched a A$20 million (US$15.2 million) minimum increase of its Kangaroo, April 2035, social bond. The forthcoming deal has indicative price guidance of 34 basis points area over semi-quarterly swap, equivalent to 34.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager Mizuho Securities.
AMP Life (A-/A3), part of the Resolution Life Group, launched a new Australian dollar denominated, 15-year non-call five-year (15NC5), tier-two, benchmark, floating-rate note (FRN) transaction on 1 December. The forthcoming deal is being marketed at 350 basis points area over three-month bank bills and is expected to price on the day of launch.