Pricing in the Australian dollar supranational, sovereign and agency (SSA) market remains dislocated, intermediaries say, based on lack of alignment between domestic investor and offshore borrower pricing expectations. A number of factors are at play, not least among them the record support SSA borrowers are receiving in global markets.
On 15 April, NRW.BANK (AA/Aa1/AAA) launched a new 10-year, Kangaroo, A$80 million (US$61.7 million) minimum, social-bond transaction. Indicative price guidance for the deal is 35 basis points area over semi-quarterly swap, equivalent to 33.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead manager Nomura.
On 13 April, BPCE (A+/A1/A+) launched a multi-tranche, Australian dollar denominated deal, comprising five-year, senior-preferred notes and seven-year non-call six-year, senior-nonpreferred notes. The former has indicative price guidance of 80-85 basis points area, and the latter 120-125 basis points area, over swap benchmarks. Both tranches are being offered in fixed- and floating-rate formats.