within mid-swaps plus 195bp–215bp
guidance at 201bp over the underlying
swap rate.
An additional reserve offer for the notes
is open for up to NZ$40m which is available
holders of Genesis Energy’s NZ$200m
GPLFA capital bonds that will be redeemed
on July 15.
BNZ , Deutsche Craigs and Forsyth Barr are
joint lead managers on the transaction.
PHILIPPINES
DEBT CAPITAL MARKETS
› BPI SETS UP US$2BN MTN PROGRAMME
BANK OF THE PHILIPPINE ISLANDS has established a
US$2bn MTN programme.
BPI Capital is sole global coordinator and
lead arranger of the programme, which
will allow BPI to list debt securities on the
Singapore exchange. Joint lead arrangers
are Deutsche Bank , HSBC and JP Morgan.
The four banks are also dealers with
Bank of America Merrill Lynch , Citigroup , ING ,
Mizuho Securities , MUFG , Standard Chartered ,
Standard Chartered Bank (Singapore) , UBS and
Wells Fargo.
› IFC ISSUES GREEN PESO NOTES
INTERNATIONAL FINANCE CORPORATION has raised
US$90m-equivalent from a debut issue
of 15-year Mabuhay, or Philippine peso-
denominated, Green bonds to support the
local capital market and renewable energy,
according to a press release.
Triple A rated IFC is yet to announce the
coupon for the bonds.
“Mabuhay” is a welcome greeting in
Tagalog.
The proceeds will be used to finance
the Energy Development Corporation’s
(EDC) capital expenditure programme,
which aims to optimise the generation
output of geothermal power plants
and improve resiliency. EDC is the
Philippines’ largest geothermal energy
producer and accounted for around 9%
of the country’s total power generation
capacity in 2016.
“IFC’s Mabuhay bond showcases the
powerful role that capital markets could
play in mobilizing savings for climate
finance,” said Jingdong Hua, IFC vice
president and treasurer.
IFC has issued 109 Green bonds to date,
amounting to US$7.5bn in 12 currencies,
to develop the Green bond asset class in
emerging markets.
SINGAPORE
DEBT CAPITAL MARKETS
› CAPLAND RETAIL CHINA SEIZES WINDOWCAPITALAND RETAIL CHINA TRUST has sold
S$130m (US$95.1m) of four-year bonds
at 3.25%, inside initial guidance of 3.4%
area.
The notes were priced at a spread of
97.7bp over Singapore dollar SOR.
No book size was released but banks and
corporate investors took 60% of the deal,
followed by insurers and fund managers
with 27%, and private banks at 13%.
The Singapore-listed trust founda window on Wednesday to launch
bookbuilding, almost two weeks after
meeting fixed income investors in mid-
June. Bankers had said weak market
conditions, volatile benchmark rates and
a large gap in price expectations between
investors and issuers were keeping issuers
on the sidelines.
Proceeds will be used to partly refinance
bank loans due next year. CRCT plans to
refinance some S$400m of bank loans
ahead of maturity in 2019.
Settlement of the unrated bonds is on
July 4, off a S$1bn multi-currency debt
issuance programme.
DBS Bank was sole lead manager for the
deal.
CRCT, which counts Temasek Holdings as
a major shareholder, owns retail properties
mainly in China.BNZ secures covered benefits
Bonds Westpac NZ waits in the wings as euro senior unsecured market strugglesBNZ INTERNATIONAL , acting through its London
branch, became the first Antipodean bank
to tap the euro market since the start of
the scathing Australian Royal Commission
into banking practices in March, with last
Tuesday’s solid €750m (US$875m) seven-
year covered Eurobond sale.
The New Zealand major bank opted for
a covered rather than a senior unsecured
offering following its recent European
roadshow, a sensible decision given the tepid
receptions for the €500m AIB Group and
€500m SpareBank 1 SMN seven-year and
five-year senior unsecured trades the same
day.
The BNZ 0.625% July 3 2025s priced at
mid-swaps plus 15bp, 3bp inside guidance,
for a modest 3bp new-issue concession, after
joint lead managers Barclays , DZ Bank , HSBC
and National Australia Bank secured a €1bn
order book.
Tuesday’s issuance outcomes are
likely to encourage more low beta trades
while markets remain so volatile. This is
a problem for fellow Kiwi major WESTPAC
NEW ZEALAND (A1/AA–/AA–) which held
European investor meetings before BNZ,
in late May and early June, arranged by
BNP Paribas , HSBC and Westpac , for a
euro-denominated five to seven-year senior
unsecured issue.
“BNZ was spot on with a covered print
which received good demand and good
pricing,” said a syndication manager away
from the trade.
“My expectation is that Westpac NewZealand, which is in no hurry to print,
will likely park its proposed senior issue
given the market backdrop and often cool
European investor appetite for non ECB
repo-eligible Australian and New Zealand
bank paper.”
In addition to the choppy backdrop,
Westpac New Zealand may encounter some
specific pushback from senior unsecured
bond investors relating to the banking
scandals Down Under.
The Royal Commission, now at the
halfway mark, has exposed multiple
instances of wrongdoing in the Australian
banking sector, wiping billions of dollars
off the shares of major banks, triggering
management reshuffles and encouraging
banks to offload business units or face
tighter regulation.
US investors have largely shrugged off
concerns, with some arguing that increased
regulation and tighter lending controls is
actually credit positive (and equity negative)
for Antipodean banks.
Westpac and Australia and New Zealand
Banking Group smoothly raised a combined
US$4.25bn in the US market in early May
while New Zealand major lender ASB’s 144A
debut on June 7 was a well received US$1bn
five-year print.
It has not all been plain sailing, however,
with National Australia Bank attracting
noticeably modest demand for a US dollar
3.25-year note offering on June 11.
BNZ is owned by National Australia Bank.
JOHN WEAVERS, ALICE GLEDHILL