IFR International - 03.11.2018

INFRATIL ALLOCATES NZ$179.5m

INFRATIL allotted almost NZ$179.5m
53M ûCOMBINEDûFORûITSûNEWûû
$ECEMBERûûûANDûû$ECEMBERûû
ûINFRASTRUCTUREûBONDSûFOLLOWINGûAû
general note offer.
Further allocations will be made from the
exchange offer for holders of Infratil’s
.:MûûBONDûWHENûITûMATURESûONû
$ECEMBERûûUPûTOûAûMAXIMUMûTOTALûFORû
the two new notes of NZ$250m.
The allocated general offer split between
THEûSIX
YEARûANDû
YEARûNOTESûISû.:Mû
and NZ$122m.
4HEû$ECEMBERûûûPAYSûAûû
COUPONûFORûTHEûlRSTûlVEûYEARSûANDûTHENû
RESETSûTOûBPûOVERûTHEûlVE
YEARûSWAPûRATEû
FORûTHEûlNALûlVEûYEARSûOFûITSûLIFE
4HEûlRSTûSUCHûRESETûINûTHEûSENIORû.EWû
:EALANDûMARKETûSINCEûTHEûGLOBALûlNANCIALû
crisis provides comfort to investors in an
ENVIRONMENTûOFûRISINGûGLOBALûYIELDS
ANZûBNZûDeutsche CraigsûFirst NZ Capital
and Forsyth BarrûAREûJOINTûLEADûMANAGERS
Infratil is an infrastructure investment
COMPANYûTHATûOWNSûAIRPORTSûELECTRICITYû
GENERATORSûANDûPUBLICûTRANSPORTûBUSINESSESû
ANDûOPERATESûINû.EWû:EALANDûANDû!USTRALIA

FIG

EUROS

OP JOINS GREEN PUSH

OP CORPORATE BANK aims to strengthen its role
as a responsible institution with a debut
'REENûBONDûEXPECTEDûTHISûMONTHûWHICHû
will help Finland catch up with its Nordic
neighbours.
The region has been prominent in the
RAPIDLYûGROWINGûCROSS
SECTORû'REENûMARKETû

WITHû30ûEXPECTINGû53BN

EQUIVALENTûOFû

.ORDICûISSUANCEûTHISûYEARû&INLANDûHASûBEENû

UNDER

REPRESENTEDûHOWEVERûMAKINGûUPûJUSTû

ûOFûALL

TIMEû.ORDICûISSUANCEûASûOFû*ULYû

ûACCORDINGûTOû#LIMATEû"ONDSû)NITIATIVEû

lGURES

,AURIû)LONIEMIûHEADûOFûGROUPûFUNDINGûANDû

investor relations at OP FINANCIAL GROUPûSAIDû

the main driver for its entrance into the

sector was to “strengthen its responsible

ROLEvûINû&INNISHûSOCIETY

h2ESPONSIBILITYûASûAûCOOPERATIVEûBANKINGû

GROUPûISûOBVIOUSLYûONEûOFûOURûCOREûVALUESvûHEû

said. “We have been participating in Green

BONDSûONûTHEûOTHERûSIDEûOFûTHEûEQUATIONûASûANû

INVESTORûFORûQUITEûAûLONGûTIMEv

Green issuance will also offer

DIVERSIlCATIONûOFû/0SûINVESTORûBASEûSAIDû

Iloniemi.

OP has announced a European roadshow

PRESENTINGûITSû'REENûBONDûFRAMEWORKû

RUNNINGûFROMû.OVEMBERûûTOûû!Nû

INAUGURALûEUROûlXED

RATEûSENIORûUNSECUREDû

'REENûBENCHMARKûMAYûFOLLOW

4HEûPROCEEDSûOFûTHEûlRSTûTRANSACTIONûWILLû

BEûALLOCATEDûTOûPROJECTSûINûTHEûlELDSûOFû

RENEWABLEûENERGYûENERGYûEFlCIENCYûGREENû

BUILDINGûPOLLUTIONûPREVENTIONûANDûCONTROLû

and sustainable land use. The framework

ALSOûALLOWSûFORûTHEûlNANCINGûOFûCLEANû

TRANSPORTûPROJECTS

OP Financial Group issues covereds

THROUGHû/0û-ORTGAGEû"ANKûBUTûTHEû

FRAMEWORKûDOESûNOTûCURRENTLYûFACILITATEû

Green covered issuance.

OP plans to issue Green covereds in the

LONGûRUNûSAIDû)LONIEMIûWHENûAûSTANDARDû

DElNITIONûFORû'REENûMORTGAGESûISûAVAILABLEû

OP is to that end participating in the

%UROPEANû#OVEREDû"ONDû#OUNCILSû%NERGYû

%FlCIENTû-ORTGAGESû)NITIATIVEûWHICHûSEEKSû

TOûDEVELOPûANûENERGY

EFlCIENTûMORTGAGEû

product.

Iloniemi said OP would be a regular issuer

in the Green bond market.

/0SûDEALûWILLûBEûTHEûlRSTû'REENûBONDû

from a Finnish bank. Nordea has issued a

õMûlVE

YEARûBUTûTHATûWASûBACKûINû*UNEû

ûBEFOREûITûMOVEDûHEADQUARTERSûFROMû

Stockholm to Helsinki.

/NLYûTWOû&INNISHûISSUERSûHAVEûSOLDû'REENû

bonds to date: local government funding

AGENCYû-UNICIPALITYû&INANCEûANDûELECTRICITYû

grid operator Fingrid.

GREEN ‘DE-RISKING’?

OP’s last senior benchmark was a €500m

!UGUSTûûINû!UGUSTûATûSWAPSûPLUSûBPû

which has since widened to 32bp over.

Green senior bonds have saved borrowers

up to 5bp or so in the past given growing

VOLUMESûOFûSTICKYûMONEYûINûMARKETû

PARTICIPANTSûPARLANCEûFORûTHISûTYPEûOFûASSETû

/0SûDEALûISûEXPECTEDûTOûBEûPRICEDûSIMILARLYû

versus conventionals.

Bankers said recent trades support the

THEORYûTHATû'REENûORû3OCIALûBONDSûHAVEûANû

EXECUTIONûADVANTAGEûINûVOLATILEûCONDITIONSû

noting that a €500m Green covered bond for

MUENCHENER HYPOTHEKENBANKûONû4UESDAYû

OUTSHONEûRECENTûNON

'REENûCOMPARABLESû

3OMEûûWENTûTOûSPECIALISTûGREENûACCOUNTS

h4HEû'REENûELEMENTûISûlRSTûANDûFOREMOSTû

BEINGûUSEDûASûAûWAYûTOûDE

RISKûAûTRADEû

getting some of that incremental demand

FROMû'REENûACCOUNTSvûSAIDûAûSYNDICATEû

banker.

ANZ MULLS COMEBACK

AUSTRALIA AND NEW ZEALAND BANKING GROUP will

HOLDûAû%UROPEANûROADSHOWûSTARTINGû

.OVEMBERûûTOûUPDATEûINVESTORSûFOLLOWINGû

ITSûANNUALûRESULTSûAFTERûWHICHûAûEUROû

BENCHMARKûSENIORûANDORûCOVEREDûWITHûANû

INTERMEDIATEûTENORûMAYûFOLLOW

)Fû!.:ûCHOOSESûTHEûLATTERûITûWILLûBEûTHEûlRSTû

EUROûBENCHMARKûCOVEREDûFROMû!USTRALIAû

SINCEû*ANUARYûANDû!.:SûlRSTûSINCEû

It last issued a euro benchmark senior

BONDûINû&EBRUARYûAûõMû3USTAINABLEû

Development Goals (SDG) bond at swaps

plus 15bp. It has since widened to 35.5bp

over on Tradeweb.

BONDS FIG

ALL GLOBAL AND EUROMARKET YEN BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)

1 Nomura 14 128,783.33 18.7
2 Sumitomo Mitsui Finl 10 111,696.71 16.2
3 Mizuho 13 104,480.04 15.2
4 BNP Paribas 2 55,500.00 8.1
5 Mitsubishi UFJ MS 5 45,713.35 6.6
6 Daiwa Securities 10 32,716.67 4.7
7 BAML 2 31,833.33 4.6
8 MUFG 2 29,833.33 4.3
9 Goldman Sachs 3 28,680.02 4.2
10 HSBC 2 15,000.00 2.2
Total 50 689,279.39
Excluding equity-related debt. Including preferreds.
Source: Refinitiv SDC code: K10

ALL SAMURAI BONDS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues ¥(m) (%)

1 Mizuho 47 432,381.67 21.1

2 Sumitomo Mitsui Finl 39 410,761.67 20.1

3 Mitsubishi UFJ MS 40 345,281.67 16.9

4 Nomura 38 317,456.67 15.5

5 Daiwa Securities 36 298,653.33 14.6

6 Natixis 11 47,120.00 2.3

7 BAML 3 46,666.67 2.3

8 HSBC 3 40,000.00 2.0

9 SG 3 32,000.00 1.6

10 Barclays 2 29,520.00 1.4

Total 58 2,047,800.00

Excluding equity-related debt.

Source: Refinitiv SDC code: K11

ALL INTERNATIONAL YEN BONDS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues ¥(m) (%)

1 Mizuho 60 536,861.71 19.6

2 Sumitomo Mitsui Finl 49 522,458.38 19.1

3 Nomura 52 446,240.00 16.3

4 Mitsubishi UFJ MS 45 390,995.02 14.3

5 Daiwa Securities 46 331,370.00 12.1

6 BAML 5 78,500.00 2.9

7 BNP Paribas 5 71,625.00 2.6

8 HSBC 5 55,000.00 2.0

9 Natixis 11 47,120.00 1.7

10 Barclays 6 41,170.00 1.5

Total 108 2,737,079.39

Including all Euro, foreign and global issues. Excluding equity-related

debt.

Source: Refinitiv SDC code: K12