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Queensland Treasury Corporation (QTC) (AA+/Aa1/AA) launched a new syndicated bond issue on November 29, announcing plans to price a new September 2017 benchmark the day after launch. The deal is QTC's third bookbuilt launch of 2012, following the pricing of a new 2019 bond in August and a new 2023 a month later.
Australian Capital Territory (ACT) (AAA) has mandated Commonwealth Bank and Westpac Institutional Bank to increase its 4.25 per cent fixed rate notes maturing on May 22 2020.
Korea Development Bank (KDB) (A/Aa3/AA-) priced a new three-year floating rate Kangaroo on November 29, in the first deal from the issuer since November 2003 according to KangaNews data.
ANZ Banking Group (ANZ) (AA-/Aa2/AA-) launched and priced a new five-year domestic deal on November 29, in the bank's first benchmark issue in the Australian dollar market since May. The self-led deal closed at volume of A$1.5 billion (US$1.57 billion).
Volkswagen Financial Services Australia (A-/A3) priced a new four-year fixed rate transaction on November 28, guaranteed by Volkswagen Financial Services. The deal priced at the tight end of its indicative range, of 130-135 basis points over semi-quarterly swap.
Christchurch International Airport (Christchurch Airport) (A-) closed its debut bond offer on December 3, with the company having attracted sufficient demand to place both its minimum issue size of NZ$50 million (US$41.3 million) and the maximum NZ$25 million in oversubscriptions.
On November 28, Mirvac Group Finance (Mirvac) (BBB) priced its first public transaction in the Australian market this year.
ING Bank Sydney Branch (ING Sydney) (A2/A+) priced an increase to its outstanding September 3 2015 domestic notes on November 28.
Moody's Investors Service (Moody's) changed the outlook on its Aa1 rating on the state of Queensland to negative, from stable, on November 26. Moody's says its decision is based on the deterioration of the state's financial performance since 2007/8, the resulting increase in debt, the protracted length of time over which scheduled improvements will take place, and the potential for progress to be slowed by less supportive conditions.
Kiwibank's issue of the first tier two instrument in the New Zealand market to contain explicit loss-absorbency language achieved strong investor support despite the securities' sub-investment grade rating, the issuer and its arranger say. The deal's structure made for an overwhelmingly retail buyer base, but in a market which continues to feature limited retail supply Kiwibank believes further subordinated bank issuance could find a welcoming home.
Consistent deal flow has continued in the Australian market, with deals pricing across a range of issuer sectors including major bank subordinated paper, a rare financial institution Kangaroo and further corporate activity. The New Zealand market saw a single deal pricing in the week, from a corporate name.
The suggestion by the International Monetary Fund (IMF) that the Australian dollar could in future be included in reporting of the currency composition of foreign exchange reserves (COFER) is more likely to be a sign of the currency's increased use in global reserves than a driver of future buying. In addition, market sources say reserve managers have been aware of the IMF's thinking for some months and any demand impact is mostly played out.