Deal size makes CHF work for Kiwibank's covered bond debut
Kiwibank issued its first-ever covered bond on March 25, selling CHF150 million (US$158.1 million) in a December 2020 maturity deal that is also the bank's first public, unguaranteed issue into a foreign currency market. The new deal was widely distributed to a wide range of investors, and Kiwibank says it hopes to return to the Swiss franc market periodically.
AUD high-yield demand pockets starting to drive deal flow
Interest in high-yielding Australian dollar income assets is increasingly driving issuance opportunities for unrated borrowers. Demand is being found in the high net worth, private banking and middle market sectors on- and offshore, paving the way for successful transactions issued under retail and wholesale documentation.
Kauri growth sustainability likely rests on international bid
Kauri market intermediaries believe the size and quantity of recent New Zealand dollar transactions from supranational, sovereign and agency (SSA) borrowers is helping to increase visibility of – and interest in – the market for both potential issuers and investors. While the bulk of Kauri buyers, especially internationally, are likely to continue their preference for frequent-borrower names, there may also be opportunities for new and returning SSAs.
Wholesale demand makes domestic long-tenor option work for Transpower
A supportive local wholesale investor base made the New Zealand dollar option the most attractive source of long-tenor funds for Transpower at the time of its recent 10- and 15-year issue, the borrower says. New Zealand's corporate market has now seen three transactions in 2013 and there is cautious optimism that a solid year of issuance could develop.
Domestic option continues to work for Wesfarmers in capped new issue
Wesfarmers (A-/A3) priced a new domestic bond transaction on March 1, selling its A$350 million (US$358.1 million) new seven-year issue at an indicative margin of 115 basis points over semi-quarterly swap. The issuer says it approached the market with a limited volume deal and attracted a strong book predominantly comprising Australian domestic investors.