South Australian Government Financing Authority
South Australian Government Financing Authority (SAFA) executed the largest deal seen in the Australian market in nearly two months on 4 July, printing A$1 billion (US$737.8 million) of new 10-year notes. Andrew Kennedy, Adelaide-based director, treasury services at SAFA, discusses the effect of market conditions on the transaction.
On 19 June, following the release of the South Australia state budget on the previous day, South Australian Government Financing Authority (SAFA) revealed a term-funding requirement for the 2019/20 financial year of A$3.2 billion (US$2.2 billion). The issuer’s requirement is expected to decrease in the 2021 and 2022 financial years before increasing at the end of the out years.
South Australian Government Financing Authority (SAFA) came to the fore in Australian alternative reference rate (ARR) innovation on 6 June, when it priced the first-ever deal linked to the Australian overnight index average (AONIA) reference rate. Deal sources say the rate is not meant to be a replacement for bank bill swap rate (BBSW), but a part of a broader suite of products Australian issuers and investors can access better to suit their needs.
South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a new, one-year, syndicated Australian Overnight Index Average (AONIA)-linked floating-rate note (FRN) deal, on 4 June. The forthcoming transaction has indicative price guidance of 38-43 basis points area over the daily compounded AONIA, and indicative volume of A$100 million (US$69.7 million). Pricing is expected on 6 June, according to sole lead manager UBS.
Approaching the end of the first quarter of 2019, most Australian economists had shelved expectations of higher rates and in many cases replaced them with predictions of further cuts in the coming months. The KangaNews Debt Capital Markets Summit 2019 brought together a panel of the country’s top economic commentators to delve into the issues at play.