ACGB issuance strategy: maintenance mode
The 2017/18 Australian Commonwealth budget enabled the Australian Office of Financial Management (AOFM) to project a reduced year-ahead funding requirement for the first time since the financial crisis. Although market participants have no expectation of significant surpluses ahead, they are thinking about how lower government bond issuance might affect market dynamics – with eyes turning first to the sluggish 20-year futures contract.
Australian market grows in global relevance as AB InBev lands
In the wake of the Australian market’s second billion-dollar deal from a global corporate issuer in less than three weeks, deal sources insist the outcome underscores the local market’s evolution on the global stage. This means truly global brands are becoming increasingly comfortable with their ability to execute meaningful transactions with minimal execution risk in the local market.
USPP continues to work for Australian corporates, Ausgrid’s debut shows
Ausgrid made its US private-placement (USPP) market debut in early August, with a US$1.885 billion-equivalent transaction comprising 10-, 12- and 15-year tranches. Sources say the deal’s record-breaking outcome demonstrates the extent to which USPP remains a viable funding option for Australian corporates in long maturities – even if it has been cannibalised by the domestic market out to 10 years.
NZGB programme remains unchanged on pre-election economic and fiscal update
In a New Zealand government bond (NZGB) programme update released on 23 August, the New Zealand Debt Management Office (NZDMO) revealed that its 2017/18 programme will remain unchanged in light of the pre-election economic and fiscal update 2017.
Pepper debuts I-Prime in response to evolving investor appetite
Pepper Australia (Pepper) printed a A$500 million (US$393.1 million) debut deal off a new residential mortgage-backed securities (RMBS) programme on 11 August. The Pepper I-Prime programme is more heavily weighted towards investment loans and has been developed in response to evolving investor appetite, the issuer says.