The closest market to Australia with a highly successful retail corporate bond market is that in New Zealand, as we have observed many times before.
Interest.co.nz has been keeping a tally on the number of retail corporate bonds issues undertaken in the last six months and says the total comes to NZ$1.8 billion.
The latest comes from Fonterra Cooperative Group, which during the week announced it would open a previously flagged NZ$300 million retail bond issue today and close the issue on March 6.
However, this will not happen, as the deal was rushed by institutional investors and broker clients and closed on Thursday with NZ$800 million raised.
The six-year bonds will offer a coupon, the greater of 7.75 per cent or swap plus 340 basis points. The coupon was to be set on March 9.
NZ Post announced that it intends to issue NZ$150 million of subordinated debt and will accept oversubscriptions of up to NZ$50 million. The issue will open in mid-March and close mid-April. NZ Post is rated 'AA-' by S&P.
And the New Zealand government owned electricity generator, Meridian Energy, rated 'BBB+/Stable/A-2' by S&P, announced the launch of its Renewable Energy Notes, aimed at the retail market. The RENs are being offered in three tranches: nine months, paying 5.25 per cent; 12 months paying 5.0 per cent; and 18 months also paying 5.0 per cent. There is no minimum size for the issue, which will close at the end of March.