ANZ sets scene in capital market
Last week ANZ dominated activity in the domestic corporate bond market and in the New Zealand market too.Locally, ANZ (rated AA-) issued A$1.1 billion of one-year FRNs, paying 43 basis points over bank bills, a deal considered in more detail today.ANZ completed the bookbuild for its Capital Notes 4, an additional tier one capital issue. The bookbuild saw the size of the ANZ issue increased to $1.3 billion and the margin was inevitably set at the low end of the indicative 470 bps to 490 bps range.Considerations of a negative outlook for ratings for the Australian sovereign and Australian banks seems to have had little impact on a major bank name selling hybrid capital.Across the ditch, ANZ New Zealand (AA-) kicked-off the week by announcing two bond issues, both open to retail investors. The senior bonds were offered with a minimum size of NZ$100 million each and margins of 125 bps to 130 bps and 148 bps to 153 bps over swap for five and seven year terms to maturity.The bookbuild conducted on Friday resulted in NZ$200 million of five year bonds and NZ$150 million of seven year bonds being sold by ANZ NZ.The margins were set at 125 bps and 150 bps over swap, respectively. The bonds will list on the NZDX on the 2nd and 1st of September, respectively.Staying in New Zealand, Kiwi Property Group Limited (not rated) also launched a new NZDX-listed bond issue at the beginning of the week. Kiwi Property is looking to raise up to NZ$125 million for seven years, on a senior secured basis.Kiwi is offering to pay 165 bps to 185 bps over swap, with the minimum coupon set at 4.0 per cent per annum. A bookbuild for the issue will be conducted on Wednesday.Returning home, Mirvac (BBB+) was the sole non-financial new issuer of the week.The REIT sold $200 million of seven year bonds, priced at 182 bps over swap. The issue takes non-financial issuance for the year to just 8.5 per cent of total issuance, well behind the 12.5 per cent seen in 2015.The Australian branch of Rabobank, like ANZ, also sought one year funding, paying 54 bps over bank bills for the privilege.Greater Bank (BBB+) sold $30 million of three year FRNs and Bendigo and Adelaide Bank (A-) sold $20 million of five year FRNs. The issues were priced at 155 bps and 130 bps over bank bills, respectively.Dexus Property Group (A-) was the only non-SSA sector issuer to tap an existing line.Dexus added A$50 million to its November 2022 line to take the size of the line to A$100 million. The increase was priced at 150 bps over swap.International Finance Corporation added $125 million to its July 2026 line. The line now stands at A$775 million and the increase was priced at 54 bps over CGS.Nederlandse Waterschapsbank (AAA) added $15 million to its September 2026 line and KommuneKredit (AAA) added $60 million to its November 2026 line. The increases take outstandings to $355 million and $315 million.African Development