Trustpower kicked off New Zealand corporate flow for 2019 with an outcome that sources insist carries over positive momentum from the previous year. It is the first New Zealand unrated corporate deal to break a 4 per cent coupon floor, using the 10-year resetting structure which gained in popularity late in 2018.
On 21 February, BNP Paribas (A/Aa3/A+) launched a benchmark five-year, Australian dollar denominated senior nonpreferred EMTN transaction, to come in either or both fixed- and floating-rate formats. The forthcoming deal has indicative price guidance of 175-180 basis points area over swap benchmarks and is expected to price on the day of launch.
On 21 February, McDonald’s Corporation (McDonald’s) (BBB+/Baa1) revealed plans for an inaugural Australian dollar denominated benchmark transaction. ANZ, Mizuho Securities and Westpac Institutional Bank have been mandated as joint lead managers.
On 20 February, KfW Bankengruppe (KfW) (AAA/Aaa) launched a tap of its September 2026 Kangaroo bond, via Deutsche Bank and TD Securities. The forthcoming deal is being marketed at 46 basis points area over semi-quarterly swap and 59 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 20 February, Argosy Property (Argosy) revealed plans for a NZ$75-100 (US$51.6-68.8 million) seven-year green bond, open to institutional and New Zealand retail investors. The issuer is expected to announce a minimum interest rate and indicative margin range on 27 February, with a rate set date on 6 March.
On 20 February, BNP Paribas (A/Aa3/A+) began taking indications of interest for a new, five-year Australian dollar denominated senior nonpreferred EMTN transaction. The possible deal will come in either or both fixed- and floating-rate formats and has initial price guidance of 180 basis points area over swap benchmarks. The deal is expected to be rated A-/Baa1/A+.
On 19 February, United Energy Distribution (UED) revealed the consent solicitation process did not proceed on its A$350 million (US$248.8 million) September 2023, A$420 million October 2024 and A$150 million February 2023 lines. Westpac Institutional Bank was mandated for the process on 22 January.
On 19 February, World Bank (AAA/Aaa) launched an indicative A$500 million (US$356.1 million), new five-year Kangaroo bond, via ANZ, J.P. Morgan and Nomura. The forthcoming deal has indicative price guidance of 39 basis points are over semi-quarterly swap, equivalent to 53.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch.