Semi FRNs likely to remain niche product despite issuance flurry
Demand for the recent burst of floating rate note (FRN) issuance from Australian semi-government borrowers appears to have come from a small group of investors, and market participants say widespread growth of the product seems unlikely. However, the states that have issued in floating format appreciate the opportunity to fund, and diversify funding sources, in a difficult market, adding that they are happy to consider its use in future.ANZ increases size of new tier one offer to A$1.34 billion [UPDATED]
The Australian tier one market kicked into gear on August 23 as ANZ (AA/Aa2/AA-) announced the offer of a new convertible preference shares (CPS) transaction. Having launched the offer at a volume of A$750 million (US$784.3 million), ANZ upsized the deal to A$1.34 billlion due to "strong investor demand".Intermediary league table review, August 22 2011
Another slow issuance week sees little movement in KangaNews's intermediary league tables, with the most significant change coming in New Zealand. Although just a single new transaction priced in the week ending August 19, the NZ$200 million (US$163.3 million) placed by Rabobank Nederland New Zealand Branch (AAA/Aaa) is enough to take its sole lead, ANZ, to the top of the New Zealand domestic league table.Securitisation market reopens as IMB prices new CMBS [UPDATED]
The Australian securitisation market saw its first primary transaction since late July with the August 23 issue of a new commercial mortgage-backed securities (CMBS) offering from IMB. The deal, which achieved its indicative volume of just more than A$200 million (US$208 million), is the third Australian CMBS this year and is IMB's first commercial mortgage securitisation since 2007.Air New Zealand completes domestic debut [UPDATED]
On September 29 Air New Zealand (Baa3, negative outlook) issued its debut transaction in the New Zealand domestic bond market. The NZ$150 million (US$114.9 million) bonds have a coupon of 6.9 per cent and a maturity of November 2016. The offer opened on September 5 and closed on September 23.