Domestic market fits the bill as Aurizon returns home
Aurizon Network (Aurizon)’s return to domestic issuance, nearly four years after its debut, is rated by buy- and sell-side deal sources as a relative-value success – allowing for a more than three-times oversubscription. The issuer says its confidence in the Australian dollar market was renewed by the pace of local deal flow during 2017.
Australian investors support long-dated deals despite shorter duration preference
While Australia’s corporate market appears to be more willing than ever to engage with longer-dated supply, a plurality of domestic fund managers say they expect to shorten portfolio duration. Investors tell KangaNews the portfolio impact of longer-dated corporate supply can be managed, however – allowing them to respond to issuers’ desire to add tenor to their debt profiles.
Lack of triple-B supply and global roots support Holcim’s domestic return
In the wake of its first domestic deal in more than two years, Holcim Finance Australia (Holcim)’s lead managers attest to the strength of international and domestic demand for this issuer. They suggest momentum was helped by the limited volume of triple-B-band issuance during 2017 as well as the global name and positioning of Holcim’s parent and guarantor, LafargeHolcim.
QTC forecasts less issuance in near term, more in out years
The annual post-budget funding update released by Queensland Treasury Corporation (QTC) on 14 June projects a lower issuance task for 2017/18 than previously anticipated, but a ramping up of issuance in the back part of the current decade.
CommBank brings majors to the RMBS party as issuance volume climbs
Australia’s resurgent securitisation market received a further boost at the start of June as Commonwealth Bank of Australia (CommBank) became the first big-four bank of the year to price a residential mortgage-backed securities (RMBS) deal. Recent deals continue to demonstrate the evolution of demand for Australian securitisation across investor geography and credit level, issuers say.