New Zealand dollar demand meets World Bank tenor preference
World Bank’s latest New Zealand dollar transaction is the largest-ever Kauri deal with tenor longer than five years. With rates continuing to head lower in New Zealand, investor appetite for longer-tenor deals is apparent and matched World Bank’s desire to fund further out on the curve.
Transmission accomplished: TransGrid’s Australian dollar debut
TransGrid printed its debut Australian dollar deal on 15 September and in the process continued a run of strong market outcomes for defensive local credits. The issuer was keen to establish a beachhead in its domestic market as it eyes a greater capex-related funding requirement in the coming years.
NZDM decreases 2020/21 issuance programme by NZ$10 billion
On 16 September, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) decreased its New Zealand government bond (NZGB) programme for the 2020/21 financial year to NZ$50 billion (US$33.5 billion) from the NZ$60 billion announced at the Budget Economic and Fiscal Update 2020 in May.
Read more: NZDM decreases 2020/21 issuance programme by NZ$10 billion
New opportunities for New Zealand RMBS
Resimac reopened the New Zealand residential mortgage-backed securities (RMBS) market with a transaction that had been pencilled in to its execution window even prior to COVID-19. Deal sources say surprisingly positive housing data and a new rates environment supported execution.
Wind carries Mercury to debut green-bond deal
Following a renaissance of corporate issuers over the past month, Mercury took advantage of momentum in the New Zealand market to print a new green-bond transaction. The NZ$200 million (US$133.7 million) transaction is also the first time in 12 years that Mercury has accessed the domestic market in a senior, retail format.