Virgin Australia (Virgin) priced the Australian market’s first single-B rated, high-yield public bond on 18 May. Deal sources cite a broad spectrum of investor participation as evidence of growing demand for this product, but they caution that the success of similar deals will, like Virgin’s, be dependent on the credit.
On 21 May, Growthpoint Properties Australia (Growthpoint) (Baa2) began taking indications of interest for a seven-year domestic green-bond transaction. The deal is being marketed at 170-175 basis points area over semi-quarterly swap and may launch as early as 22 May. ANZ, National Australia Bank and Westpac Institutional Bank are joint lead managers.
On 21 May, DBNGP Finance (DBNGP) (BBB/Baa3), the financing entity of the Dampier to Bunbury National Gas Pipeline ownership group, launched a benchmark seven-year senior-secured domestic deal. The forthcoming transaction has indicative price guidance of 150 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to lead managers ANZ and Mizuho Securities.