12-month bond issuance at A$108 billion

With a couple more days remaining until the end of the month, March 2010 has set a new record for monthly issuance volume in the domestic corporate bond market. The total for March now stands at A$14.7 billion, ahead of the A$14.3 billion achieved in July last year. Rolling twelve month issuance is at a new high of A$107.5 billion.

National Australia Bank was the standout issuer of the week, raising A$1.5 billion for three years at just 77 basis points over swap/bank bills. This is the narrowest spread yet achieved on three-year debt by one of the major banks. The issue was split into two tranches: A$900 million fixed; and A$600 million floating.    

NAB's subsidiary, National Wealth Management Holdings (rated AA-) also issued three-year bonds - A$150 million fixed and A$200 million floating - at a spread of 195 bps over swap/bank bills.

Nordic Investment Bank returned to the market after last issuing in November 2009. The bank raised A$600 million, evenly divided between fixed and floating rate tranches, for five years at a spread of 36 bps over swap/bank bills.

Asian Development Bank added a further A$450 million to its February 2016 line to take outstandings to A$850 million. The line was opened in February 2006 at a spread of 27.5 bps to CGS (18 bps below swap) and the addition was made at a spread above swap of 66.4 bps.

KangaNews reported the 'AA+' rated German agency, L-Bank (formerly known as Landeskreditbank Baden-Wuerttemberg Foerderbank), privately placed A$75 million of two-year bonds. The move was said to be in preparation for a public return to the market.

The bank has issued only three times in the past, with the last issue and only remaining bonds outstanding being A$200 million of four-year bonds issued in February 2007. The bonds were sold at five bps under swap.

Volkswagen Financial Services Australia raised A$150 million via an issue of four-year bonds priced at 225 bps over swap.

Adelaide Airport (BBB) completed the week by launching a A$264 million buyback of its credit wrapped, December 2010 bonds. Adelaide Airport will issue up to A$264 million of new 5.5-year bonds in exchange.

The bonds have an indicative credit spread of 250-270 bps and will be priced tomorrow.