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Svenska Handelsbanken prioritised spread over volume in its Kangaroo return on 22 May, deal sources suggest, with pricing within its global curve a clear priority. The transaction is also the first financial-institution Kangaroo deal to print in 2019. Leads say this is because of favourable funding conditions globally and a range of available issuance formats.
On 30 May following the release of the New Zealand budget, New Zealand Debt Management (NZDM) revealed a NZ$10 billion (US$6.5 billion) borrowing requirement for the 2019/20 financial year. The programme is NZ$2 billion higher than forecast at the half-year economic and fiscal update (HYEFU) in December 2018.
On 30 May, Bendigo and Adelaide Bank (BEN) began taking indications of interest for its new residential mortgage-backed securities (RMBS) deal, Torrens Series 2019-1. The forthcoming transaction is expected to launch in the week commencing 3 June and has indicative total volume of A$500 million (US$346 million). National Australia Bank is arranger for the transaction and joint lead manager alongside ANZ, Deutsche Bank, Macquarie Bank and Westpac Institutional Bank.
The Australian Office of Financial Management (AOFM) issued a new line by tender on 29 May. A lower net-new-issuance requirement has allowed the sovereign borrower to weight its issuance strategy towards tenders this financial year, only using syndication to debut a new 2041 nominal bond and a 2050 inflation-indexed bond.
On 30 May, AMP Bank began taking indications of interest for its new residential mortgage-backed securities (RMBS) deal, Progress 2019-1 Trust. The forthcoming transaction has minimum total volume of A$750 million (US$519.1 million) and is expected to launch on 3 June. National Australia Bank is arranger for the transaction and joint lead manager alongside ANZ, Commonwealth Bank of Australia, Deutsche Bank and MUFG Securities.
Export Development Canada (EDC) (AAA/Aaa) launched a capped A$200 million (US$138.6 million) tap of its May 2023 Kangaroo bond on 29 May, via Commonwealth Bank of Australia and TD Securities. The forthcoming deal is being marketed in the area of 35 basis points over semi-quarterly swap and is expected to price on the day after launch.