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On 14 June, Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) launched a new 10-year non-call five-year, tier-two benchmark domestic transaction. The self-led deal has indicative price guidance of 180 basis points area over swap benchmarks and will come in either or both of fixed- and floating-rate note formats. Pricing is expected on the day of launch.
Avanti Finance (Avanti) priced a rare New Zealand residential mortgage-backed securities (RMBS) transaction on 12 June, in a NZ$200 million (US$140.7 million) deal arranged by Westpac New Zealand (Westpac). With a limited universe of local RMBS against which to compare, deal sources say the similarities between the Australian and New Zealand markets came into play.
On 13 June, following the release of the Queensland state budget the day before, Queensland Treasury Corporation (QTC) revealed a A$8 billion (US$6.1 billion) borrowing requirement for the 2018/19 financial year. This is approximately A$1.8 billion less than the forecast given in the 2017/18 borrowing programme.
Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) mandated a potential Australian dollar, 10-year non-call five-year, tier-two deal on 12 June. The self-led deal is expected to be rated BBB/Baa1.
Auckland Council (AA/Aa2) revealed it will launch a NZ$150-200 million (US$105.3-140.4 million) five-year green bond during the week beginning 18 June, in a statement posted on the NZX on 12 June. ANZ is arranging and leading the forthcoming deal.
On 12 June, Genesis Energy revealed plans for a maximum NZ$240 million (US$168.6 million) 30-year subordinated capital notes transaction. The offer will be available to retail and certain institutional investors, with the full details of the deal expected to be released in the week beginning 18 June.
On 12 June, China Construction Bank New Zealand (CCB New Zealand) (A/A1) launched a new, NZ$75-100 million (US$52.7-70.2 million) five-year domestic deal. The forthcoming transaction has indicative price guidance of 130 basis points area over swap. Pricing is expected on or before 14 June, according to lead managers ANZ, Commonwealth Bank of Australia and Westpac Banking Corporation New Zealand Branch.
Meridian Energy (BBB+/S&P) launched its NZ$150-200 million (US$105.4-140.5 million) seven-year domestic transaction to institutional and retail investors on 11 June. The forthcoming deal has an indicative margin of 130-140 basis points over swap, with the final margin and interest rate to be set following a bookbuild scheduled to take place on 15 June.
In the first full week of June, Barclays printed A$600 million (US$456.6 million) in a multi-tranche Kangaroo transaction and European Investment Bank priced a new A$250 million 11-year deal. In securitisation, Firstmac printed A$1 billion in its second residential mortgage-backed securities deal of 2018.
Firstmac printed its second residential mortgage-backed securities (RMBS) transaction of 2018, Firstmac Mortgage Funding Trust No. 4 Series 2-2018 (Firstmac 2-2018), on 8 June. The A$1 billion (US$760.6 million) deal was led by ANZ and J.P. Morgan. The transaction was predominantly placed with Japanese investors according to James Austin, chief financial officer at Firstmac in Brisbane, who spoke to KangaNews shortly after the deal priced.
After a prolific start to 2018, long-end Kangaroo issuance from supranational, sovereign and agency (SSA) issuers has tailed off significantly in recent months, with sizeable transactional volumes seen through the first months of the year reverting back to the small- and medium-sized deals which have previously characterised the market. European Investment Bank (EIB)’s recent deal bucks this trend.