Airservices first 'corporate' issuer for 2016
The highlight in the domestic corporate bond market was the emergence of arguably the first notional corporate issuer for 2016.Commonwealth government owned Airservices Australia (rated AAA), sold A$200 million of seven year bonds and A$200 million of ten year bonds. The bonds were priced to yield 2.975 per cent and 3.275 per cent per annum respectively, which equates to 85 basis points and 95 bps over swap. Bank Queensland (rated A-) was the only other issuer of note in the domestic market. The bank sold A$600 million of five year floating rate notes, paying 148 bps over bank bills.Westpac (AA-) added A$60 million to its June 2026 line, taking the size of the line to A$300 million. Pricing was not disclosed.And across the ditch, ASB (AA-) increased its May 2021 line by NZ$300 million. Priced at 127 bps over swap, the increase takes the line to NZ$650 million.Also in New Zealand, Kiwibank (A+) opened a new line. The bank sold NZ$200 million of three year FRNs, priced at a margin of 115 bps over bank bills.