Canterbury Uni's philanthropic deal caps busy week in NZ [UPDATED]
The closing of an innovative philanthropic bond deal from the University of Canterbury (Canterbury Uni) (NR) headlined a busy New Zealand market last week, with the total volume of issuance reaching NZ$565 million (US$409 million). There are also hopes that Canterbury Uni's strategy can be replicated by other funders in the university space.Offshore inflation demand to build slowly following IWT removal
Following Royal Assent to the Tax Laws Amendment Act 2009 on December 4, all Commonwealth government securities (CGS) are now legally eligible for exemption from the non-resident interest withholding tax (IWT). Although intermediaries say there has not been an immediate impact in terms of buying activity from offshore, they remain hopeful that the removal will stimulate offshore demand for inflation-linked CGS product in particular.BoS adds A$1.4 billion 2011 ahead of busy maturity year
On December 10 Bank of Scotland Australia (BoS Australia) (A+/Aa3) priced an Australian government guaranteed March 2011 domestic bond with a total volume of A$1.4 billion (US$1.28 billion). The deal consists of two tranches: A$250 million of fixed rate notes pricing at 55 basis points over the June 2011 government bond and A$1.15 billion of floating rate paper which priced at 25 basis points over swap.