Corporate bond issuance maintans a modest pace
Domestic corporate bond issuance continued at a modest pace last week. Prominent among the issuers was Canada's Toronto-Dominion Bank (rated AA-), which raised a total of A$800 for 4.75 years.The two-tranche issue comprised $600 million of floating-rate notes and $200 million of fixed rate bonds, both with a December 2020 maturity. The notes were priced at 141 basis points over the bank bill swap rate.The other notable issuer was Newcastle Permanent Building Society (rated BBB+), which raised $200 million for three years. The FRNs were priced at 160 bps over bank bills.Suncorp raised $50 million for one year, paying 50 bps over. The beginning of the week saw two supranationals add to existing lines. African Development Bank (rated AAA) added $30 million to its June 2026 line and Rentenbank (rated AAA) added $50 million, to its May 2026 line. The increases take the size of each line to $130 million and $455 million, respectively.In New Zealand, the local corporate bond market enjoyed the busiest week since the start of the year. Genesis Energy (rated BBB+) got the week underway when it priced the NZ$100 million six-year bond issue launched the week before, at 145 bps over swap. The bonds will yield 4.14 per cent.ANZ New Zealand (rated AA-) upsized the two tranche issue that it had also flagged the previous week. The bank sold NZ$300 million of three year FRNs and NZ$325 million of five-year bonds. The former were priced at 100 bps over bank bills, and the latter at 140bps over swap.Offshore, two of Australia's largest property groups issued in the Euromarket.??Scentre Group (rated A) sold €500 million of seven year bonds, at a margin of 117 bps over mid-swaps. NAB advised that this should have swapped back into Australian dollar at 216 bps over bank bills.And GPT Group (rated A-) sold HK$400 million of ten-year bonds. The bonds will yield 2.98 per cent.