Competitive pricing and long-dated demand supports AusNet’s record-breaking volume
AusNet Services (AusNet) accumulated final interest of A$800 million (US$609.8 million) for its A$425 million August 2027 domestic line printed on 7 February. This makes the deal the Australian market’s largest 10-year transaction for a corporate since 2007. The outcome was driven by growing domestic demand for 10-year paper and the issuer’s desire to price in line with its global curve.
Kauri market opens with constructive tone as heavy redemption year looms
Intermediaries say investor diversification continues to provide the Kauri market with appeal to global issuers, and despite some question marks over pricing appeal the market opened to a solid flow of activity in 2017. Kauri issuance typically tapers off in the second half of the calendar year, but market users are optimistic about 2017 due to a period of substantial redemptions.
Post-deal insights: Australian banks on the global radar as CommBank makes hay in the local market
In the wake of the first Australian domestic deal of a new year which has seen some of the best global credit issuance conditions for some time, Commonwealth Bank of Australia (CommBank) says all options are open for the majors in 2017 – despite selecting the domestic market for its own calendar-year opener. CommBank also notes the extent to which the major banks are growing in relevance on a global scale.
AOFM adapts strategy to meet larger task, but remains confident in capacity
In the wake of its largest syndication ever and with a marginally increased funding task following the Commonwealth mid-year economic and fiscal outlook (MYEFO), the Australian Office of Financial Management (AOFM) says Australian dollar market capacity is sufficient to meet its issuance requirement. The sovereign debt management agency is, however, adapting elements of its issuance strategy to cope with the volume it needs to issue.
Post-deal insights: price and volume rewards for NAB's early-year tier-two print
The decision by National Australia Bank (NAB) to launch and price a tier-two transaction early in the new year paid off, issuer and leads say, in the form of a tightly priced deal with greater than expected volume for an Australian dollar EMTN transaction. NAB printed A$275 million (US$204.6 million) of 15-year, non-call 10-year (15NC10) tier-two notes on January 11.