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.
South Australian Government Financing Authority (SAFA) has continued in its quest to mould the Australian overnight index average (AONIA)-linked issuance market, introducing longer tenor and larger volume. The market environment has changed markedly in the last few months, including for AONIA, but the issuer says engagement continues to grow.
On 10 June, South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a three-year, Australian Overnight Index Average (AONIA)-linked floating-rate note (FRN) transaction. The minimum volume for the forthcoming deal is A$100 million (US$69.7 million) and is capped at A$1 billion. Indicative price guidance is 34 basis points area over the daily compounded AONIA.
On 1 May, South Australian Government Financing Authority (SAFA) revealed in its monthly funding intentions update that it is considering a new, three-year Australian Overnight Index Average (AONIA)-linked, floating-rate note (FRN) deal with quarterly coupons.
The Australian semi-government sector is undertaking a flurry of issuance in syndicated and privately placed format, as borrowers seek to stay ahead of growing funding tasks. Deal sources say the market is functional but challenging, as issuers try to overcome substantial sovereign supply and an evolving central bank buying programme.
HIGH-GRADE ISSUERS YEARBOOK 2020
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