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National Australia Bank (NAB)’s latest Australian dollar senior deal faced some challenges in execution, deal sources say, but still managed to draw significant volume and tightened pricing relative to guidance. The transaction is evidence of a growing trend of higher volume but lower issuance frequency by Australia’s major banks.
On 21 February, African Development Bank (AfDB) launched a minimum NZ$100 million (US$68.5 million) 10-year socially responsible investment (SRI) Kauri bond. The forthcoming deal has indicative price guidance of 43.3 basis points area over mid swap. Pricing is expected on the day of launch, according to lead manager Daiwa Capital Markets.
BNG Bank (AAA/Aaa) launched a minimum A$15 million (US$10.7 million) increase to its July 2029 ‘renewable-energy’ Kangaroo bond on 21 February, via Daiwa Capital Markets. The forthcoming deal is being marketed at 54 basis points area over semi-quarterly swap and is expected to price on the day of launch.
On 21 February, Incitec Pivot (BBB/Baa2) mandated ANZ and Commonwealth Bank of Australia to arrange debt investor meetings regarding a potential Australian dollar denominated transaction. The meetings will take place in Australia and Asia, commencing 28 February.
Trustpower kicked off New Zealand corporate flow for 2019 with an outcome that sources insist carries over positive momentum from the previous year. It is the first New Zealand unrated corporate deal to break a 4 per cent coupon floor, using the 10-year resetting structure which gained in popularity late in 2018.
On 21 February, BNP Paribas (A/Aa3/A+) launched a benchmark five-year, Australian dollar denominated senior nonpreferred EMTN transaction, to come in either or both fixed- and floating-rate formats. The forthcoming deal has indicative price guidance of 175-180 basis points area over swap benchmarks and is expected to price on the day of launch.
On 21 February, McDonald’s Corporation (McDonald’s) (BBB+/Baa1) revealed plans for an inaugural Australian dollar denominated benchmark transaction. ANZ, Mizuho Securities and Westpac Institutional Bank have been mandated as joint lead managers.
