Latest News
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.
On 7 June, China Construction Bank New Zealand (CCB New Zealand) (A/A1) revealed plans to meet investors regarding a potential domestic transaction. ANZ, Commonwealth Bank of Australia and Westpac Banking Corporation New Zealand Branch will arrange the meetings.
European Investment Bank (EIB) (AAA/Aaa/AAA) launched a new, May 2029-maturity, Kangaroo bond on 7 June. The forthcoming deal will have minimum volume of A$200 million (US$153.1 million) and is being marketed at 45 basis points area over semi-quarterly swap, equivalent to 52.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the same day as launch, via TD Securities.
On 7 June, Avanti Finance launched its residential-mortgage backed securities (RMBS) transaction, Avanti RMBS 2018-1. The deal has an indicative volume of NZ$150 million (US$105.6 million) with the ability to upsize. Pricing is expected on or before 12 June, according to arranger and lead manager Westpac Banking Corporation, New Zealand Branch.
Housing New Zealand (Housing NZ) returned to the New Zealand debt capital market for the first time since 1999 with a NZ$500 million (US$351.2 million) dual-tranche transaction on 1 June. Deal sources suggest the addition of another high-grade issuer in the New Zealand dollar market is a boon for market development, particularly due to the nature of the institution and its intent to be a repeat issuer.
On 6 June, Australian Finance Group (AFG) began taking indications of interest for its prime residential mortgage-backed securities (RMBS) transaction, AFG 2018-1 Trust. The potential deal has an indicative total volume of A$350 million (US$268 million). ANZ is arranging the transaction and leading alongside National Australia Bank.