NAB gets busy in offshore debt markets

Newcastle Permanent Building Society (rated BBB+) was a rare financial institution selling bonds in the domestic debt market last week, launching a minimum A$150 million, three-year floating rate note issue on Friday.

By the end of the day, it priced a $225 million deal at 110 basis points over bank bills.

NPBS last sold $200 million of two-year floating rate notes in October, selling the FRNs then at a spread of 85 bps over bank bills.

In New Zealand, ASB Bank (rated AA-) was the only issuer. The bank sold NZ$300 million of three-year FRNs at a spread of 50 bps over bank bills, and NZ$200 million of five-year bonds priced at 75 bps over swap.

AusNet Services (A-) (formerly known as SP AusNet) became the first non-financial Australian company to tap international bond markets this year, and was very well received.

The company sold €560 million of 12-year bonds, against an order book of €2.75 billion. With initial price talk being 85 bps to 90 bps over mid-swaps, the deal priced at 73 bps over, which swaps back into Australian dollars at around 164 bps over bank bills.

And apart from launching its capital notes hybrid issue (reported late last week), National Australia Bank (rated AA-) raised £400 million for five years at a spread of 78 bps over UK Gilts.

NAB's NZ subsidiary, BNZ (also rated AA-), went to the US 144A market to raise US$600 million for three years.

The bonds were priced at a spread of 82 bps to US Treasury bonds, which should swap back into NZ dollars around the mid-80s over bank bills.