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On 2 March, following the sale of the New South Wales government’s (AAA/Aaa) share of the Snowy Hydro Scheme (Snowy Hydro) to the Australian Commonwealth government, New South Wales Treasury Corporation (TCorp) announced that its funding requirement for the 2017/18 financial year remains unchanged. In its half-yearly review, released on 14 December 2017, TCorp indicated that its funding requirement was A$6.4 billion (US$5 billion).
On 2 March, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched a minimum A$25 million (US$19.4 million) tap of its February 2028 Kangaroo. The forthcoming transaction is being marketed at 41.5 basis points area over semi-quarterly swap and 43.75 basis points area over Australian Commonwealth government bond. The deal will price on the day of launch, according to lead manager TD Securities.
European Investment Bank (EIB) (AAA/Aaa/AAA) launched a minimum A$200 million (US$155.1 million) increase to its February 2028 Kangaroo climate-awareness bond on 2 March, via J.P. Morgan. The forthcoming transaction has price guidance of 46 basis points area over semi-quarterly swap or 46.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 2 March, the Victorian government (AAA/Aaa) announced the sale of the Victorian share of the Snowy Hydro Scheme (Snowy Hydro) to the Australian Commonwealth government for A$2 billion (US$1.6 billion). The Victorian government’s financing authority, Treasury Corporation of Victoria (TCV), disclosed that with the sale it has now completed its funding requirement for the 2017/18 financial year.
Western Australian Treasury Corporation (WATC) says it is meeting client and investor demand, and fulfilling its financing promises by issuing a benchmark floating-rate note (FRN). Meanwhile, the issuer believes investors are beginning to respond to the green shoots evident in the Western Australian (WA) economy.
Bluestone Group (Bluestone) agreed acquisition terms with US private-investment firm Cerberus Capital (Cerberus) on 27 February, which sees the specialist lender’s Asia-Pacific business spun off as a separate entity. In the wake of the transaction, Campbell Smyth, Bluestone’s Sydney-based chief executive, discusses the impact of the deal.
On 1 March, Credit Suisse Group (Credit Suisse) (BBB+/Baa2/A-) launched a senior-unsecured, six-year non-call five Australian dollar EMTN transaction. The forthcoming deal will come in either or both of fixed- and floating-rate formats, and has indicative price guidance of 125 basis points area over swap benchmarks. Pricing is expected on the day after launch.