Strong demand keeps yield tight on NZDMO's new 2019 benchmark
The New Zealand Debt Management Office (NZDMO) (AAA/Aaa/AAA) introduced a new 2019 nominal line on September 30, placing NZ$200 million (US$147.3 million) at a weighted average yield of 4.91 per cent having achieved a cover ratio of nearly five in the tender. Yield on the new line came in line with pre-tender predictions although the NZDMO appears to have paid only a tiny new issue premium.GE Capital Australia takes A$750 million in first deal since 2007 [UPDATED]
Another issuer returned to the Australian market for the first time since the crisis with GE Capital Australia (AA+/Aa2) pricing a new A$750 million (US$727.2 million) five-year transaction on October 1. The fixed rate line has a coupon of 7 per cent, and priced at a margin of 223.75 basis points over the April 2015 ACGB.Broadening deal flow seen as sign of maturing AUD market
Issuers on- and offshore believe the Australian dollar market continues to develop as a consistent source of funds as issuance in both the Kangaroo and domestic arenas shows signs of added diversity. Recent weeks have seen new issuer sectors returning to the Kangaroo market – with covered bond borrowers also hovering – while the corporate pipeline in the domestic market is also starting to translate into deal flow.
CEB issues new A$300 million 10-year Kangaroo [UPDATED]
Council of Europe Development Bank (CEB) (AAA/Aaa/AAA) priced its fourth Kangaroo deal of the year on September 29 - a new A$300 million (US$290.4 million) 10-year line. The deal substantially extends CEB's Kangaroo curve from its previous end point of December 2015.WATC shaves predicted margin on 2014 benchmark tender [UPDATED]
The new April 2014 benchmark bond listed via tender by Western Australian Treasury Corporation (WATC) (AAA/Aaa) on September 23 came to market with a margin slightly tighter than that predicted by analysts. The agency placed a face value of A$500 million (US$478.4 million) of the 5.5 per cent coupon bond with by tender, attracting a cover ratio of 2.42, and a further A$616 million in a subsequent consolidation offer.