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Aurizon Network (BBB+/Baa1) launched a 10-year, Australian dollar denominated benchmark transaction on 26 August. Indicative price guidance for the forthcoming deal is 215-220 basis points area over semi-quarterly swap, and is expected to price on the day of launch. Mizuho Securities, National Australia Bank and Westpac Institutional Bank are leading.
On 26 August, Korea Expressway Company (AA/Aa2) launched a debut, dual-tranche, three-year Kangaroo deal with indicative price guidance of 78-80 basis points over swap benchmarks. Pricing is expected on the day of launch. HSBC, Mizuho Securities and Standard Chartered are joint lead managers.
On 26 August, International Finance Corporation (IFC) (AAA/Aaa) launched a new NZ$200 million (US$131 million) minimum, five-year Kauri transaction. The forthcoming deal is being marketed at 29 basis points area over mid-swap, equivalent to 32.4 basis points area over New Zealand government bond. Pricing is expected on the day after launch, according to lead managers BNZ and TD Securities.
Overwhelming investor demand for corporate paper in a busy week of issuance enabled Coles Group to execute a short transaction process off the back of its annual results and to achieve significant price tightening, deal sources say.
On 25 August, Resimac began taking indications of interest for its potential residential mortgage-backed securities (RMBS) deal, Versailles 2020-1. Indicative total volume for the transaction is NZ$250 million (US$163.3 million) and is expected to launch in the week beginning 31 August. BNZ and Westpac New Zealand are leading.
After launching its new five-year transaction the day before, Transpower New Zealand (AA- by S&P) announced on 25 August it is increasing the amount of oversubscriptions it is able to accept to NZ$175 million (US$114.4 million) from NZ$75 million. The volume cap is now NZ$300 million. Pricing is expected on the day of the announcement, according to lead manager Westpac Banking Corporation New Zealand Branch.
On 25 August, Korea Expressway Corporation (AA/Aa2) began taking indications of interest for a potential new three-year Kangaroo transaction, offered in either or both fixed and floating-rate note formats. The deal is being marketed at 80-85 basis points area over swap benchmarks. HSBC, Mizuho Securities and Standard Chartered are leading.
Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) launched its syndication of a new, November 2031 Treasury bond on 25 August, via Citi, Commonwealth Bank of Australia, UBS and Westpac Institutional Bank. The forthcoming deal has indicative price guidance of 8-11 basis points over the implied bid yield for the ten-year futures contract. Pricing is expected on the day after launch.