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SCT Logistics (NR) launched a new unrated senior-unsecured issue in the Australian market on June 15. The issuer is seeking to raise A$75-85 million (US$58.0-65-7 million) from the dual-tranche deal. According to KangaNews data, if the transaction prices at the top end of this estimate it will be the largest unrated bond issue in the local market. In September last year, 360 Capital Investment Management (NR) priced A$75 million in a five-year issue.
Warehouse Group (Warehouse) (NR) closed its senior bond offer in the New Zealand market having raised NZ$125 million (US$87.4 million). According to a statement released on the NZX, the bonds will begin trading on June 16.
Deal flow cooled during the Australian holiday-shortened week. Even so, Bendigo and Adelaide Bank priced its inaugural residential mortgage-backed securities transaction of the year, China Construction Bank New Zealand debuted and EUROFIMA returned for its first Kangaroo since early 2014.
EUROFIMA says its decision to return to the Kangaroo market was derived from a combination of best pricing and latent demand from Japanese and local investors. The issuer's requirement for 10-year funding is large enough that it is also confident around its plans to return to the Australian market in future.
Bendigo and Adelaide Bank (BEN) has priced its first prime residential mortgage-backed securities (RMBS) deal of 2015. The transaction – Torrens Series 2015-1 Trust – had indicative volume of A$500 million (US$389.8 million) across six tranches.
The Reserve Bank of New Zealand (RBNZ) surprised the market on June 11 by cutting the official cash rate (OCR) by 25 basis points to 3.25 per cent – the first OCR cut since March 2011. Analysts say the RBNZ is flagging the expectation of a further cut to come, although the consensus in the immediate aftermath of the latest decision is that the cut will not come at the next scheduled opportunity.
The Australian Office of Financial Management (AOFM) released an operational notice on June 10 which sets out the process by which it will auction its holdings of residential mortgage-backed securities (RMBS). Shortly afterwards, the AOFM also disclosed details of the first and second planned sales under its divestment programme, which are due to take place on June 24 and July 14.