Debt capital market focus shifts to New Zealand 15 June 2015 3:28PM Philip Bayley The action in the debt capital market last week was in New Zealand, where China Construction Bank made its debut and Bank of New Zealand made a large issue. The New Zealand subsidiary of China Construction Bank (rated A) made a two-tranche issue, selling NZ$50 million of three-year bonds, priced at a spread of 85 basis points over swap and NZ$25 million of five-year floating rate notes at a margin of 120 bps over bank bills. The Sydney branch of China Construction Bank made its domestic market debut in November 2013, with a A$400 million, three-year FRN issue and added another $50 million to the line in September last year. On Friday, Bank of New Zealand sold NZ$575 million of five-year bonds, priced at 85 bps over swap. ANZ New Zealand holds the record for the largest tranche with an NZ$835 million tier one capital issue in 2008, and Westpac New Zealand issued the largest tranche of senior ranking bonds at NZ$800 million in 2013. Tapping existing lines accounted for three of the five bond issues seen in the domestic market last week. Inter-American Development Bank (rated AAA) was back to tap its February 2020 line, as it had done just the week before.Priced at 48 bps over commonwealth government securities, IADB added another $50 million, to take the size of the February 2020 line to $1.45 billion.African Development Bank (rated AAA) added $25 million to its June 2026 line. The bank increased the size of the line that it opened in May last year to $100 million. Bank of Queensland (rated A-) tapped its June 2018 FRN, which it opened this time last year. BOQ's June 2018 FRN now stands at $400 million, an increase of $100 million. The increase was priced at 78 bps over bank bills, while the line was opened at 100 bps. New issuance came from Eurofima (rated AA+), and Optus Finance (rated A). Eurofima opened a December 2025 line at $100 million. The bonds were priced at 80.5 bps over CGS, to yield 3.9 per cent. Optus Finance placed $200 million of seven-year bonds at a spread of 120 bps over swap. Offshore, Rio Tinto (rated A-) raised US$1.2 billion for ten years, paying a spread of 145 bps over US Treasury bonds. Commonwealth Bank sold £200 million of one-year EFRN's priced at Libor flat, and BNZ International Funding (rated AA-) raised CHF25 million for seven years, at a spread of just 25 bps over mid-swaps.