On 13 December, following the New Zealand government’s half year economic and fiscal update, New Zealand Debt Management Office (NZDMO) revealed an unchanged core Crown borrowing programme for the 2018/19 financial year, at NZ$8 billion (US$5.5 billion). Around NZ$1 billion of the issuance programme is expected to be undertaken in inflation-indexed bonds.
On 29 November, South Australian Government Financing Authority (SAFA) (AA+/Aa1) revealed plans for a possible Australian dollar denominated, Australian overnight index average-linked floating-rate note (AONIA-FRN) transaction. Market consultation for the proposed structure will take place in late 2018, with a possible transaction to follow in 2019. Meetings will be held in Sydney, Melbourne and Brisbane in the week commencing 12 December.
Christchurch City Holdings (Christchurch) (A+ by S&P) launched a NZ$100-150 million (US$68.6-102.9 million) six-year domestic deal on 19 November. The forthcoming deal has an indicative margin of 85-95 basis points over swap, with the margin and interest rate to be set following a bookbuild scheduled for 21 November. Arranger and lead manager is Westpac Banking Corporation New Zealand Branch. ANZ is also a lead manager.