TCV back to borrowing as new-money requirement rebounds
Treasury Corporation of Victoria (TCV) has disclosed an expected funding task of A$8.3 billion (US$6.3 billion) for 2017/18, significantly up on recent years as the state government continues to focus on infrastructure investment even after the asset-sales cycle has largely played out. Analyst response to the Victoria state budget, delivered on 2 May, is broadly positive despite the increased deficit though TCV spreads widened on budget day.
Vicinity opens its domestic account with Australia’s largest property-sector deal since 2014
Vicinity Centres (Vicinity) says all-in cost on its debut domestic transaction was very attractive even though some domestic investors reveal they sat the deal out based on sector preference and spread widening. Despite a slightly softer market backdrop, buy-side sources say they expect solid demand for corporate credit to continue.
Larger task and tenor extension bring Auckland Airport to Australia
Having issued two benchmark transactions in less than a month, including a debut in the Kangaroo market, Auckland International Airport (Auckland Airport) says a larger capex task will make the issuer a more frequent visitor to global markets. It highlights the extremely favourable pricing outcome it received in both Australian and New Zealand dollars and the positive tenor evolution of the Australian option.
Goldman Sachs returning to Australia for TLAC-compliant deal
Goldman Sachs (BBB+/A3/A) launched a seven-year deal in the Australian market on 20 April. Unlike other recent US bank issuance in Australia – including the A$1.2 billion (US$899.4 million) print by Wells Fargo & Company on 19 April – Goldman Sachs is issuing off its Kangaroo programme rather than issuing a global transaction.
Seek finds home for unrated debt in Australian institutional market
A rare fully institutionally targeted unrated transaction in the Australian market demonstrates the increasing willingness of fund managers to engage with transactions without a formal rating, deal sources say. But further flow will likely be constrained by the issuer’s unusual status as an unrated entity with investment-grade metrics.