Unwrapping Sydney Airport
The Anzac Day holiday shortened week saw very little activity in the domestic market. Rentenbank was the only issuer in the domestic market, adding A$100 million to its January 2015 line and taking outstandings to A$1.3 billion. The addition was priced at a spread of 75.5 basis points over Commonwealth government bonds.Offshore, Commonwealth Bank added CHF100 million to its February 2015 line and A$50 million to its August 2013 EMTN. The increases take outstandings to CHF350 million and A$350 million.The Australian branch of Rabobank also added A$50 million to its January 2013 EMTN, taking outstandings to A$500 million. KangaNews reported on Friday that Sydney Airport Corporation (rated BBB) will be meeting with investors this week to assess their interest in a buyback of its credit-wrapped November 2011 and December 2012 bonds, in exchange for a new long-dated, unwrapped bond. There are A$400 million of the November 2011 bonds outstanding and A$280 million of the December 2012 bonds.The 2011 bonds were wrapped by Ambac and the 2012s by MBIA. Ambac is now under regulatory control and MBIA is effectively defunct.There have been only three issues by 'BBB' category, non-FI, issuers so far this year. The volume raised amounts to only A$565 million.