A busy week in New Zealand

New Zealand was the more active of the domestic markets last week, with Watercare Services, World Bank and Westpac all undertaking bond issues. Goodman Property Trust and University of Canterbury (see below) also announced the completion of their offerings.

Watercare Services added NZ$40 million and NZ$10 million to the May 2014 fixed and floating rate lines that it opened in May this year. The increases were priced at 100 basis points over bank bills/swap, which compares very well with the 200 bps paid when the lines were opened.

As with the original bonds, the additions are guaranteed by Auckland City Council, hence the AA rating on the NZ$170 million of fixed rate and NZ$50 million of floating rate notes now outstanding.

World Bank reprised its top-up of the week before to add another NZ$125 million to its December 2014 line, taking outstandings to NZ$600 million. The pricing remained unchanged at 12 bps over swap and 25 bps over the New Zealand government bond rate but the yield stepped up by 7.5 bps to 5.615 per cent.

Westpac New Zealand added NZ$190 million to its November 2013 line, which it opened in November last year. The increase, priced at 110 bps over swap, takes outstandings to NZ$455 million. The line was opened at 142 bps over.

Goodman Property Trust completed its retail issue via GMT Bond Issuer Ltd, NZ$50 million oversubscribed to raise NZ$150 million, in total. The 5.5-year bonds will pay 200 bps over swap.

According to our records, year to date bond issuance in New Zealand now stands at NZ$9.3 billion. This is 12 per cent below last year's record of NZ$10.6 billion.