New Zealand: powerful and energised

Across the Tasman Sea, the World Bank was also an active vendor of debt, adding NZ$225 million to its December 2014 line, to take outstandings to NZ$900 million.

The top-up was priced at 20 basis points over swap, which does not compare well with the 12 bps achieved when the World Bank last added to the line in December. However, the yield then was 5.615 per cent against 5.495 per cent, last week.

European Investment Bank sold NZ$200 million of February 2013 bonds at 17 bps over swap and 36.5 bps over New Zealand Government bonds.

The other issuance for the week came from New Zealand's power companies: TrustPower (NR) and Mighty River Power (BBB+). The former added NZ$4 million to its December 2016 bonds. TrustPower issued NZ$61 million of the bonds in December, along with NZ$75 million of December 2014 bonds.

Reuters reported that Mighty River Power added to its October 2016 fixed and floating rate bond lines. We reported back in October last year, that the company was expected to issue NZ$50 million of fixed and floating rate bonds with such a maturity, but no details of the issue were forthcoming and none can be found even now.

However, Mighty River Power was reported as adding NZ$50 million to the fixed rate tranche and NZ$20 million to the floating rate tranche, with the additions priced at 195 bps over swap and bank bills, respectively. At the same time, MRP issued NZ$30 million of ten-year bonds at 230 bps over swap.

And further to the news two weeks ago, that Meridian Energy (BBB+) was looking to sell up to NZ$200 million of bonds, it completed its bookbuild last week and will sell NZ$125 million of March 2015 bonds at a yield the greater of 7.15 per cent or 175 bps over swap; and NZ$75 million of March 2017 bonds at a yield the greater of 7.55 per cent or 185 bps over swap.