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On 17 May, Liberty Financial (BBB- by S&P) mandated Deutsche Bank, National Australia Bank and Westpac Institutional Bank to explore a potential Australian dollar denominated curve-extension transaction.
China Everbright Bank Sydney Branch (China Everbright Sydney) (BBB+/Baa2/BBB) began taking indications of interest for a potential new three-year, Australian dollar denominated, senior-unsecured, floating-rate note, benchmark transaction on 17 May.
On 17 May, PACCAR Financial (A+ by S&P) launched a new three-year, Australian dollar denominated, benchmark transaction. The deal is being marketed at 50-52 basis points area over semi-quarterly swap and is expected to price on the day of launch. ANZ, TD Securities and Westpac Institutional Bank are leading.
On 17 May, Precinct Properties New Zealand launched a NZ$100-150 million (US$72.5-108.7 million), six-year, senior-secured, green bond. Offered to institutional and New Zealand retail investors, indicative price guidance for the deal is 145-160 basis points area over mid-swap. Pricing is expected on 21 May, according to lead managers ANZ, BNZ, Forsyth Barr and Jarden Securities.
On 14 May, SkyCity Entertainment Group (BBB- by S&P) revised the indicative margin and extended the bookbuild for its NZ$125-175 million (US$89.80-125.7 million) six-year deal. In response to market changes, the margin has been revised to 160-170 basis points over mid swap from a range given at launch on 10 May of 170-190 basis points. The minimum interest rate remains 3 per cent.
The second week of May saw strong deal flow in the New Zealand dollar market, including transactions from New Zealand Local Government Funding Agency and Asian Infrastructure Investment Bank. Meanwhile, in Australia Barclays printed a multi-tranche Kangaroo deal.
The Reserve Bank of New Zealand (RBNZ) has embarked on an asset purchasing programme as part of its regular open market operations in support of monetary policy goals. KangaNews will provide subscribers with easy access to asset purchase data, which will be updated as information is made publicly available by the RBNZ.
On 14 May, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched an indicative A$25 million (US$19.3 million) tap of its June 2032 Kangaroo bond. The forthcoming deal is being marketed at 30 basis points area over semi-quarterly swap and 26.1 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch according to lead manager Nomura.
ASB Bank has re-entered the wholesale funding market for the first time since the COVID-19 pandemic began with a brace of new deals. The New Zealand dollar senior and euro covered bond transactions were well supported and indicate a robust investor view on New Zealand credit, the borrower says.