AusNet Services (AusNet)’s debut deal for 2018 demonstrates the long-dated demand uncovered in 2017 was not simply a trend while conditions were favourable, deal sources argue. Demand, and AusNet’s final outcome, were robust despite broader market uncertainty.

AusNet Services (AusNet) (A-/A3) launched a new, 10.5-year domestic benchmark deal on 8 February. Indicative price guidance for the forthcoming transaction is 130 basis points area over semi-quarterly swap. Pricing is expected on the day after launch, according to lead managers, ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank.

On 30 January, AusNet Services (AusNet) (A-/A3) revealed plans to meet with fixed-income investors in Asia and Australia regarding a possible 10.5-year domestic transaction. The meetings will begin on 31 January and will be arranged by ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank.

AusNet Services (AusNet) accumulated final interest of A$800 million (US$609.8 million) for its A$425 million August 2027 domestic line printed on 7 February. This makes the deal the Australian market’s largest 10-year transaction for a corporate since 2007. The outcome was driven by growing domestic demand for 10-year paper and the issuer’s desire to price in line with its global curve.

AusNet Services (AusNet) says its ability to print US$375 million of 2071 non-call 5.5-year Reg S hybrid notes came as improving offshore markets offered some clarity around fair pricing of hybrid instruments. The deal's lead managers insist a more positive environment for credit and risk should support ongoing activity, even as markets continue to be characterised by fickle execution windows.