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On 5 February, Westpac New Zealand (AA-/A1/AA-) revealed plans for a new self-led New Zealand dollar transaction. The potential deal will come in either or both a three-year floating-rate note and a 5-7 year fixed rate note format.
On 3 February, Korea Resources Corporation (A/A1) revealed plans for a debut three- or five-year Kangaroo transaction. BNP Paribas, Citi and J.P. Morgan have been mandated to arrange a series of investor meetings and calls in Australia and Asia beginning 6 February.
The federal government is re-evaluating its plan to facilitate retail access to corporate issuers. However, industry sources doubt that even improvements to the simplified corporate bond regime will encourage supply.
On 3 February, South Australian Government Financing Authority (SAFA) revealed its intention to issue a new, May 2032 bond line via syndication. The deal will be for up to A$1 billion (US$668.8 million) and is expected to come in the week beginning 10 February. Bank of America Securities, Commonwealth Bank of Australia, National Australia Bank and UBS are joint lead managers.
Australian market deal activity slowed to a trickle in the public-holiday interrupted final week of January with only Liberty Financial issuing an A$300 million (US$201.5 million) auto asset-backed securities transaction and BNG Bank increasing its April 2029 line by A$25 million.
On 31 January, Latitude Financial Services (Latitude) mandated Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank to engage investors regarding an Australian dollar denominated asset-backed securities (ABS) deal from its personal loans programme.
On 30 January, BNG Bank (AAA/Aaa/AAA) launched a A$20 million (US$13.5 million) tap of its April 2029 Kangaroo bond, via TD Securities. The forthcoming deal is being marketed at 51 basis points area over semi-quarterly swap and 50.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
Dexus Finance (Dexus) printed the largest Australian dollar true corporate deal at 12-year tenor on 23 January. Deal sources say a cornerstone investor enabled the issuer to launch confident of securing competitive pricing and liquidity at the extended duration.
On 30 January, Housing New Zealand Limited, a subsidiary of Kāinga Ora – Homes and Communities (Kāinga Ora) updated the market on its plans for a new 2030 line and a tap of its 2025 line under its wellbeing bonds programme. Issuance in the week of 27 January is no longer being considered, but the issuer will continue to monitor the market in coming weeks.
Westpac Banking Corporation (Westpac) capped an active month of funding with US dollar tier-two and Australian dollar residential mortgage-backed securities (RMBS) deals on consecutive days. The issuer tells KangaNews it brought forward some funding to take advantage of strong conditions and is now well set for the near term.