Debt market breaking records III

We're probably stretching a theme a little too far here but across the Tasman July 2009 finished with the third largest monthly issuance volumes, according to our records, at almost NZ$1.9 billion. The largest monthly issuance volume seen was in September 2007, at almost NZ$2.2 billion. This is followed by May 2008, which came in at just over NZ$2.0 billion.

Last week, Rabobank's local subsidiary issued NZ$250 million of May 2012 bonds priced at 87 basis points over swap. International Finance Corporation was the only kauri issuer for the week, raising NZ$150 million with a December 2017 maturity. The issue was priced at 57 bps over NZGB.

The New Zealand Debt Management Office issued another four tranches of bonds: November 2011, NZ$100 million; April 2015, NZ$50 million; December 2017, NZ$150 million; and May 2021, NZ$100 million. The issues achieved weighted average yields of 3.84 per cent, 5.28 per cent, 5.76 per cent and 6.25 per cent and were oversubscribed 4.15, 2.06, 1.33 and 2.58 times, respectively.

July was another big month for offshore issuance by New Zealanders too, with total issuance of more than NZ$3.0 billion, but this does not break any records. Last week, ANZ National added another US$500 million to its April 2012 US s144A line at margin of just 58 bps over US Treasuries. When the government guaranteed line was opened in March, ANZ National paid 204 bps over US Treasuries.

ANZ National also issued US$500 million of August 2011 FRNs in the same market. The government-guaranteed notes priced at just Libor plus 18 bps.