COUNTRY REPORT NEW ZEALANDNEW ZEALAND
DEBT CAPITAL MARKETS
› ASB PRINTS TIGHT EURO COVERED
ASB FINANCE, acting through its London
branch, sold last Monday a €500m
(US$587m) 0.625% seven-year covered
Eurobond, rated Aaa/AAA (Moody’s/Fitch),
at mid-swaps plus 10bp, inside initial 14bp
area guidance.
Barclays, BNP Paribas, Commerzbank and
ASB’s Australian parent, CBA, were joint
bookrunners on the offering, which
drew orders in excess of €1.75bn from 67
accounts. Such strong demand enabled the
leads to price the bond without a new-issue
premium.
German/Austrian investors bought
43%, UK/Ireland took 23%, Benelux 21%,
Switzerland 4%, Asia 4%, France 3% and
others 2%. Asset managers were allotted
32%, banks 31%, insurance and pension
companies 6%, central banks and official
institutions 16% and others 5%.
ASB is the third of New Zealand’s four
identically rated (A1/AA–/AA–) major
lenders to access the euro covered bond
market this year. Westpac New Zealand
issued a €1.0bn 0.25% five-year note on
March 30, priced 7bp wide of mid-swaps,
while Bank of New Zealand raised €750m
from a 0.5% seven-year on June 22 at mid-
swaps plus 15bp.
The last Australian major bank to issue
euro covered bonds was Westpac on May
11, when it sold a €1bn 0.50% seven-year
note at 7bp over mid-swaps, alongside a
€500m 1.375% 15-year at plus 17bp.
› BOC NZ MAKES LOCAL DEBUT
BANK OF CHINA, New Zealand branch, rated
A1/A (Moody’s/S&P), raised NZ$150m
(US$106m) from its debut local bond
offering through joint lead managers ANZ
and Westpac, New Zealand.
The 4.09% October 17 2022s priced at par
last Thursday, at the tight end of mid-swaps
plus 135bp–145bp guidance.
China Construction Bank, New Zealand,
rated A1/A (Moody’s/S&P), made its
domestic market bow in June 2015 with
a NZ$75m sale of three-year floating-rate
notes and five-year fixed-rate bonds.
Identically rate Industrial and
Commercial Bank of China, New Zealand
branch, issued an inaugural NZ$25m three-
year FRN in December 2014 before selling
a NZ$100m three-year floater on February
21 this year.
› AUCKLAND AIRPORT RAISES NZ$100MAUCKLAND INTERNATIONAL AIRPORT, rated
A– (S&P), raised NZ$100m from last
Wednesday’s fixed-rate 5.5-year retail note
offer arranged by joint lead managers CBA
and Westpac.
The 3.64% April 17 2023s priced at par, at
the tight end of mid-swaps plus 82bp–87bp
guidance.
On April 6 this year, the Kiwi airport
operator issued a NZ$150m three-year
floating-rate note, priced 75bp wide of
three-month BKBM.STRUCTURED FINANCE
› Q CARD PRINTS NZ$120M ABSThe three senior tranches of last Thursday’s
Q CARD TRUST NZ$120m (US$85m) New
Zealand credit card and fixed instalment
receivables all priced inside guidance.
The A$39.5m Class A 2017-3 and A$38m
Class A 2017-4 notes, with soft bullet dates
of August 15 2019 and August 16 2021,
priced at one-month BKBM plus 110bp and
127.5bp, below 115bp area and 135bp area
guidance, respectively.
The NZ$12m Class B notes, with a
February 15 2022 soft bullet, priced inside
one-month BKBM plus 225bp area price talk
at 220bp over.
Pricing on the NZ$8.4m Class Cs, the
NZ$6m Class Ds, the NZ$6.6m Class Es and
the NZ$2.4m Class Fs was not disclosed.
The transaction was completed with
NZ$7.1m Class S notes.
Both A notes are rated AAA (Fitch) and
have 35.5% credit support.
The Bs to Fs have AA, A, BBB, BB and B
ratings from Fitch, respectively. These notes
have respective credit support of 25.5%,
18.5%, 13.5%, 8.0% and 6.0%.
Westpac was arranger and joint lead
manager with BNZ on the Flexi Cards-
originated ABS.
In August, Flexi Cards, formerly Fisher
& Paykel Finance, issued NZ$89m Class
A notes in two tranches through Q Card
Trust to refinance Class A 2014-2s on their
August 15 soft bullet date.
Fisher & Paykel did Australasia’s first
securitisation of credit-card receivables in
August 2014 with NZ$283.25m ABS.
Unlike loans, which have defined
maturity dates, credit-card balances are
revolving in nature. As a result, credit-card
ABS are typically sold out of master trusts,
which purchase eligible receivables from
the sellers on a revolving basis.
Credit-card ABS also tend to have soft
bullet maturities rather than weighed-
average lives.PHILIPPINES
EQUITY CAPITAL MARKETS
› SALE OF ROBINSONS RETAIL STAKEAn undisclosed vendor has sold Ps2.8bn
(US$54m) of shares in Philippine retailer
ROBINSONS RETAIL at Ps97.80 each, off a
Ps96.80–Ps100 price range, a person with
knowledge of the deal has said.
The final price was at a 5% discount to
the pre-deal close of Ps103.
The books were multiple times
covered with participation from 30
investors. Interest was strong from
domestic long-only institutions after
the recent inclusion of the stock in the
Philippine Stock Exchange PSEi Index.
The top five accounts were allocated 50%
of the shares.
The vendor sold 28.7m shares, or 2.1% of
the paid-up capital.
There is a 45-day lock-up on the
vendor.
Deutsche Bank was the sole bookrunner.SINGAPORE
DEBT CAPITAL MARKETS
› GENTING MARKETS SAMURAIGENTING SINGAPORE, the operator of the
Resorts World casino resort, began
marketing last week maiden three-
tranche Samurai bonds.
Pricing on a three-year fixed tranche
was indicated at yen offer-side swaps plus
45bp–55bp, that on a five-year at plus
55bp–65bp and that on a seven-year at
plus 75bp–85bp.
Genting Singapore is rated A3/A–
(Moody’s/Fitch) and the bonds are expected
to score a A from R&I.
SMBC Nikko is sole bookrunner. Pricing is
expected as early as October 18.› CRCT DOUBLES MTN PROGRAMMESingapore-listedCAPITALAND RETAIL CHINA TRUST
has doubled the size of its multi-currency
MTN programme to S$1bn (US$735m) from
S$500m.
DBS is arranger and dealer on the
programme.
CRCT is a REIT with a portfolio of
shopping centres in China.