Financial institutions dominate last week's bond issues
Banks and other financing institutions dominated bond issues last week, with corporate issuers largely absent.The only major corporate issue was the launch of Goodman Group's US$250 million issue of 10-year bonds. The price guidance is believed to be set at 350 basis points over Treasury and the funds will be used to repay existing debt.Among banks, National Australia Bank made the largest sterling issue by an Australian issuer this year, selling £600 via a seven-year fixed coupon offering 3.62 per cent, which was around 160 bps over gilts. The bond was subscribed two times. NAB has a refinancing requirement of A$22 billion in FY11.NAB also priced an increase to its September 2014 line, while ANZ made a total increase of A$2 billion of its November 2014 fixed and floating rate issues. In other local issues, EFIC sold A$500 million, via reissue of a 10-year bond against the minimum indicated size of A$300 million and priced it at a better-than-expected yield of 29 bps over swap. The bond pays a coupon of six per cent and will yield 5.95 per cent.Kangaroo issues during the week included Germany's Rentenbank, which priced an A$250 million reissue of its April 2017 Kangaroo bond at a yield of 6.12 per cent, taking the total issue of the AAA-rate bond to A$1.15 billion.The Council of Europe Development Bank added A$200 million to its October 2020 Kangaroo issue, at 99 basis points over similar government bonds.HSBC is reported to be planning a bond investor update in the coming week but it isn't known if the bank already has issues lined up.