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Two Australian corporate borrowers accessed the euro market in the week beginning 18 March. Deal sources say Telstra Corporation (Telstra) and Scentre Group (Scentre) took advantage of the euro’s current status as the most competitive global funding option for Australian issuers to price 10-year deals, each with negative new-issue concessions.
On 26 March, MUFG Bank Auckland Branch (MUFG Auckland) (A/A1) launched a minimum NZ$100 million (US$71.1 million) three-year floating-rate note (FRN) transaction with indicative price guidance of 95-100 basis points over three-month bank bills. Pricing is expected on the day after launch, according to joint lead managers ANZ, BNZ, Morgan Stanley and MUFG Securities.
Australia welcomed its newest high-grade borrower and first programmatic social-bond issuer on 21 March, when National Housing Finance and Investment Corporation (NHFIC) priced its debut transaction. Leads say attractive credit fundamentals led to a well oversubscribed transaction supplemented by incremental demand from the social aspect.
On 25 March, BWP Management, the responsible entity for BWP Trust (A-/A3) announced plans for a potential new Australian dollar denominated deal. Commonwealth Bank of Australia and Westpac Institutional Bank have been mandated to arrange a conference call with fixed-income investors on 29 March.
On 25 March, Peet (NR) launched a five-year, indicative A$75 million (US$53.1 million) senior-unsecured transaction. The forthcoming deal has an indicative coupon in the area of 6.75 per cent. National Australia Bank is sole lead arranger and bookrunner.
On 25 March, Housing New Zealand (Housing NZ) (AA+/S&P) revealed plans for a new 7.5-year sustainability bond via ANZ and BNZ. A global investor conference call will be held on 26 March.
On 25 March, Heartland Bank revealed plans for a new, five-year deal to be offered to institutional and New Zealand retail investors. Full details for the potential transaction are expected to be released on 1 April. BNZ is arranger and lead manager alongside Commonwealth Bank of Australia, Deutsche Craigs and Westpac Banking Corporation New Zealand Branch.
Government-sector syndicated issuance was to the fore in the Australian market during the third full week of March, with Treasury Corporation of Victoria pricing a A$2.5 billion (US$1.8 billion) 10-year deal and National Housing Finance and Investment Corporation's inaugural A$315 million 10-year social bond. Insurance Australia Group, meanwhile, priced a A$450 million tier-two deal.
