News
Sydney Airport Corporation (Sydney Airport) (BBB/Baa2/BBB) has announced plans to explore the possibility of refinancing a pair of credit-wrapped domestic bonds maturing in November 2011 and December 2012 with new, unwrapped paper. The issuer plans to meet investors in Melbourne and Sydney on May 5 and 6 before committing to the replacement offer.
Telstra (A/A2/A) has announced it will present to investors on April 30 ahead of a potential Kauri bond issue. The presentation, which is being arranged by BNZ, Commomwealth Bank of Australia and Westpac NZ, will be made to both domestic and offshore investors. Telstra, which has NZ$255 million (US$183 million) outstanding in two Kauri maturities having last issued in 2008, will use the proceeds of any deal to pay down New Zealand dollar commercial paper.
Broad-based demand for high-grade product denominated in Australian dollars – from both local and international buyers – drove hefty issuance in the week to April 23. Appetite was also strongly focused on long-dated paper: two Kangaroo deals of nine-year or longer tenor priced and the week's sole corporate transaction was a five-year deal, with credit investors once again expressing their willingness to go longer.
Export Development Canada (EDC) (AAA/Aaa) is the second agency roadshowing in Australia this week with the intention of becoming a regular Kangaroo issuer. The non-deal roadshow began in Brisbane on April 19 before heading to Melbourne and Sydney, with the issuer saying the maturing Kangaroo market now offers more consistent borrowing prospects.
Demand for New Zealand inflation-linked product is bringing the New Zealand government closer to issuing in this format for the first time in more than 10 years, with an announcement possibly coming as early as May 20 when the national budget is released. The news comes after Transpower Finance (Transpower) (AA/Aa3) launched New Zealand's first corporate inflation-linked bond on April 19, with a minimum size of NZ$75 million (US$53.3 million).
Austria's government-guaranteed export finance agency, Oesterreichiscche Kontrollbank (OKB) (AAA/Aaa) is roadshowing in Australia with hopes of becoming a regular Kangaroo borrower. The roadshow, which is being hosted by Commonwealth Bank of Australia (CommBank) and UBS Investment Bank, visits Sydney on April 19 and 20 then Melbourne and Brisbane on the succeeding days.
High-grade issuers say domestic demand for Australian dollar product is strong with interest coming from a number of sectors – not just balance sheet buyers increasing liquid asset holdings in advance of forthcoming new regulations. And while offshore demand is being constrained to a degree by the strong currency Australia is avoiding any significant sovereign debt concerns.
Dexus Property Group (Dexus) (BBB+/Baa1) became the first true corporate borrower to issue a second new domestic bond line since the financial crisis with the pricing of its new April 2017 deal on April 15. The transaction was for A$180 million (US$168.1 million) of new seven-year bonds and came to market alongside a buyback of A$178.9 million of the issuer's outstanding February 2011 bonds.
The European Investment Bank (EIB) (AAA/Aaa/AAA) launched its fifth Kangaroo transaction of 2010 on April 15, announcing plans to sell a minimum of A$400 million (US$373.9 million) in an increase to its seven-year line. The deal will bring the outstanding size of the line to at least A$2 billion, making it the issuer's fifth bond of that size in the Australian market.
The third new benchmark line to be issued by New South Wales Treasury Corporation (TCorp) (AAA/Aaa/AAA) as part of the first two stages of its exit strategy from the Commonwealth government guarantee was launched on April 14. The new May 2020 line, which has a minimum size at launch of A$1 billion (US$928.6 million) was originally expected to price last month.
On April 12 the World Bank (AAA/Aaa/AAA) launched an increase to its November 2016 and October 2019 Kangaroo lines. The transaction, which will price on or before April 14, will be the first time the World Bank has tapped a Kangaroo bond since it last added to its debut issue in January 2000. That line, which was increased twice following initial pricing in 1999, matured in 2003.
Dexus Property Group (Dexus) (BBB+/Baa1) will become the first true corporate borrower to issue a second new domestic bond line since the financial crisis when it prices the new April 2017 deal it launched on April 12. The transaction launched alongside a matching buyback of a minimum of A$100 million (US$93.4 million) of the issuer's outstanding February 2011 bonds.