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As the year-end approaches, Australian market activity for the week was limited to South Australian Government Financing Authority's second AONIA-linked A$250 million (US$173.1 million) one-year deal and SEEK's A$150 million 6.5-year non-call 3.5-year, unrated, subordinated, floating-rate note transaction.
Synlait Milk (Synlait) printed the largest unrated deal in the New Zealand market since 2011 with its inaugural transaction, KangaNews data shows. The issuer came to market to diversify its funding sources as it expands.
On 12 December, following the state government of Victoria’s mid-year budget review, Treasury Corporation of Victoria (TCV) revealed an increased borrowing requirement for the 2019/20 financial year to a total of A$8.5-9.5 billion (US$5.9-6.6 billion) in order to prefund for a higher requirement in 2020/21.
On 12 December, following the release of the Queensland government’s mid-year fiscal and economic review, Queensland Treasury Corporation (QTC) announced an unchanged term debt borrowing programme for the 2019/20 financial year at A$9.9 billion (US$6.8 billion).
This year has been a landmark for the adoption of alternative reference rates (ARR) in the Australian market and South Australian Government Financing Authority (SAFA)’s second deal linked to the Australian Overnight Index Average (AONIA) has capped it off. The issuer says engagement in the Australian market has reached a new level of maturity.
New South Wales Treasury Corporation (TCorp) revealed a A$3.7 billion (US$2.5 billion) increase to its funding requirement for the 2019/20 financial year on 12 December, following the release of the state government’s half-yearly review (see table).
On 11 December, following the New Zealand government’s half year economic and fiscal update, New Zealand Debt Management (NZDM) revealed an unchanged core Crown borrowing programme for the 2019/20 financial year, at NZ$10 billion (US$6.6 billion). Around NZ$500 million of the issuance programme is expected to be undertaken in inflation-indexed bonds.
On 11 December, SEEK launched a 6.5-year non-call 3.5-year (6.5NC3.5), Australian dollar denominated, subordinated, floating-rate note (FRN) transaction. The forthcoming deal is being marketed at 375 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to joint lead managers ANZ, HSBC and National Australia Bank.