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On July 3, African Development Bank (AfDB) (AAA/Aaa) priced a new January 2025 Kangaroo line in what will be the borrower's seventh Australian dollar deal for 2014. According to KangaNews data, the borrower most recently visited the market in May with a new A$75 million (US$70.9 million) 12-year line with pricing of 58.75 basis points over Australian government bond.
Bank of Communications Sydney Branch (BoCom Sydney) (A-/A2/A) priced an inaugural three-year floating-rate Australian dollar deal on July 2.
Despite significant demand for its latest syndicated deal, the New Zealand Debt Management Office (NZDMO) confirms it has no plans to update its tender schedule. The NZDMO priced the syndicated offer of a new 2027 maturity benchmark bond line on July 2, reaching its previously announced maximum volume of NZ$2 billion (US$1.8 billion).
On July 2, Rentenbank (AAA/Aaa/AAA) priced a new 10.5-year Kangaroo line. According to KangaNews data, the deal is the 12th time the borrower has visited the Kangaroo market in 2014. Rentenbank most recently visited the Australian dollar market on June 5 with a A$150 million tap to its April 2024 line which had pricing of 57.75 basis points over Australian government bond.
The New Zealand Debt Management Office (NZDMO) priced the syndicated offer of a new 2027 maturity benchmark bond line on July 2.
Following yet another uneventful Reserve Bank of Australia (RBA) rates decision on July 2, analysts have been left searching for crumbs in a reserve bank statement which is universally interpreted as nearly identical in tone to its June equivalent. The strong Australian dollar features in many analysts' post-decision reports, but the consensus expectation is that the period of rates stability in Australia is likely to be protracted.
Deal flow for the last full week of June comprised only Australian domestic corporate issuance with three new deals – from Dexus Wholesale Property Fund, University of Melbourne and QPH Finance, the financing entity for the group which manages and develops the Port of Brisbane – emerging. Meanwhile, the New Zealand Debt Management Office appointed four banks to lead manage a new 2027 nominal bond.
Port of Brisbane (BBB) set a new pricing benchmark for the Australian domestic market when it returned to issuance after a year's hiatus. The market's currently highly competitive pricing edge is noted by the borrower – which also flags its desire to return to domestic issuance in order to continue building out its curve.
QPH Finance (BBB), the financing entity for the group which manages and develops the Port of Brisbane, launched and priced a new seven-year transaction the Australian domestic market on June 26.
University of Melbourne (AA+) became the second university to access the domestic corporate bond market in 2014, printing a debut A$250 million (US$234.1 million) seven-year issue on June 24. The solid fundamentals of higher-education issuers mean a continued wave of issuance from this sector is unlikely – but this enhances the appeal of these bonds, leads say.