Semi-governments selling bonds for once

Several state government borrowing authorities sold bonds last week, a relatively rare event, least in 2010. The South Australian Government Financing Authority (rated AAA) on Monday added A$500 million to its September 2017 line to take outstandings to A$1.25 billion.
 
Tascorp (rated AA+) launched a new June 2014 line mid-week and priced a A$750 million issue on Thursday. The bonds were priced at 77.75 basis points over Commonwealth government bonds to yield 5.47 per cent per annum.

On Friday, Northern Territory Treasury Corp (rated Aa1) added $50 million to its July 2014 line to take outstandings to A$450 million. The increase was priced at 78 bps over Commonwealth bonds.

Outside the semi-government sector ANZ launched a minimum $500 million, three year bond issue on Wednesday morning and priced a $1.25 billion deal in the afternoon. The bank sold $1 billion of floating rate notes at 90 bps over bank bills and $250 million of fixed rate bonds at 90 bps over swap.

At the same time, the German development bank, KfW (rated AAA), launched a minimum $250 million increase to its December 2019 line and priced a $850 million increase on Thursday, at 124.75 bps over CGS and 70 bps over swap. The increase takes outstandings to $2.5 billion.

The increase also underlines how far credit spreads have moved in recent months. KfW last added to this line in April at a spread of just 82.75 bps over CGS and 42.5 bps over swap.