TrustPower sets interest rate on NZ$150 million retail deal
TrustPower (NR) opened its New Zealand subordinated bond offer on August 9 in the market's third new retail corporate transaction of the year. TrustPower has attached a 6.75 per cent coupon to the seven-year issue and says almost all of the NZ$75 million (US$61 million) general offer – which forms half the prospective deal volume – has already been reserved for clients of market participants under firm allocations.EIB nets A$650 million in Kangaroo market return
European Investment Bank (EIB) (AAA/Aaa/AAA) priced its third Kangaroo transaction of 2012, and its first since Q1, on August 8, with the placement of a new 10-year line. The deal adds to the A$850 million (US$898.5 million) of Kangaroo paper the supranational has sold so far this year – well down on the A$3 billion it issued in 2011 and the record A$6.1 billion it sold in 2009.Positive signs for NZD issuance following Kauri and global deals
Although NZ$1.25 billion (US$1.02 billion) of issuance from international borrowers in less than a week may have reduced the short-term prospects of further Kauri deal flow, issuer and leads on the recent World Bank Kauri transaction say demand for New Zealand dollars – especially in Asia – is growing. World Bank placed NZ$400 million on July 31 in the largest single Kauri issue since 2007.
NZ finance minister focusing on long-term fiscal project over fixed surplus date
In an exclusive interview with KangaNews, New Zealand's deputy prime minister and minister of finance, Bill English, stresses the government's long-term process of fiscal consolidation over the current timeline for projected budget surplus by 2014/15. English also acknowledges the importance of an effective government bond market but does not commit to maintaining issuance as and when the sovereign borrowing task falls.Domestic demand drives new QTC benchmark but US interest intrigues
Although the domestic bid – supported by interest from Asia – dominated the book in the return of Queensland Treasury Corporation (QTC) to the syndicated benchmark market, issuer and leads say the addition of a 144A capability to QTC's benchmark programme also attracted interest from US investors. The treasury corporation placed a new 2019 bond via a A$1.65 billion (US$1.7 billion) bookbuild on August 1.