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BNG Bank (AAA/Aaa/AAA) launched a minimum A$25 million (US$17.4 million) increase to its April 2029 Kangaroo bond, on 7 June. Indicative price guidance for the forthcoming transaction is 52 basis points area over semi-quarterly swap, equivalent to 63.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager ANZ.
On 7 June, Mercury revealed plans for a NZ$300 million (US$198.7 million) subordinated-capital transaction to New Zealand retail and institutional investors. Full details for the transaction are expected to be released in the week beginning 10 June, when the offer opens. Forsyth Barr is arranger for the transaction and joint lead manager alongside BNZ and Deutsche Craigs.
On 7 June, KfW Bankengruppe (KfW) (AAA/Aaa) launched a minimum A$150 million (US$104.7 million) increase to its June 2022 Kangaroo bond. The forthcoming transaction is being marketed at 33 basis points area over semi-quarterly swap, equivalent to 40.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager Nomura.
Substantial growth in Australian investor participation in sovereign, supranational and agency (SSA) Kangaroo issuance is in large part attributable to the continued evolution of sustainability-linked issuance, market participants say. This could have further positive consequences in primary and secondary markets as SSAs build sustainability bond curves.
On 5 June, Caltex Australia (Caltex) (BBB+ by S&P) mandated MUFG Securities and National Australia Bank to organise fixed-income investor meetings in Australia and Hong Kong, regarding a potential seven-year domestic deal. The meetings will commence 12 June.
The Reserve Bank of Australia (RBA)’s decision to cut the cash rate on 4 June surprised no-one. Analysts are focusing on a perceived lack of dovish intent in the RBA statement, while an economic forum conducted immediately prior to the cut identified the local housing market – rather than global trade uncertainty – as the primary likely driver of future rates direction.
On 5 June, ANZ Banking Group (ANZ) began taking indications of interest for its self-led residential mortgage-backed securities (RMBS) deal, Kingfisher 2019-1. The forthcoming transaction has indicative total volume of A$750 million (US$524.3 million) and is expected to launch on 11 June.
On 5 June, PACCAR Financial (A+/S&P) launched a new, four-year, Australian dollar denominated senior-unsecured benchmark. The initial price guidance for the forthcoming transaction is 90-93 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to joint lead managers ANZ and Westpac Institutional Bank.
