insto - Australian financial markets

Taupo Council issues NZ$25m July 2012 FRN

Taupo District Council issued NZ$25 million in floating rate notes

with a maturity 23 July 2012. Sole lead manager for the deal is ANZ.

S&P keeps CSR on CreditWatch, Fitch quits

Standard & Poor’s said it would keep its BBB+ long-term corporate credit and debt ratings on CSR Ltd on CreditWatch with negative implications because of the sale of CSR’s Sucrogen sugar and renewable energy business.

The week ended with Members Equity Bank pricing its A$1.2 billion dual currency issue, a large-sized RMBS with a four-bank syndicate of lead managers. Two convertibles were issued on the eve of the new financial year, in which more issuance is expected.

NAB A$1bn increase to April 2013 fixed/floating

Telstra wraps up borrowing program

Friday

In a quarter where the major theme was the return of Aussie corporates to bond markets, the Brambles transaction stood out.

Brambles is a corporate which is well known in Australia and the UK, but not so much among uS investors, despite its strong operational presence in that country.

But when the company went to the united States’ 144a bond market in March, the response from the market was almost overwhelming.

The Bond markets are off to a bumper start

Australia’s debt capital markets have continued the momentum of 2009 on into the early part of 2010, with several new themes.

While the expiry of the Federal Government’s Guarantee saw a flurry of last-minute activity, that story was overtaken by the strength of the Kangaroo market and a strong return by Australian corporates to the bond markets as they sought funding diversification.

Corporate bond markets are open and the fundamentals are attractive, both for issuers and investors. In this environment, who needs bank debt? Or even a banking relationship? We are exaggerating, of course...

It started as a throw away comment in one of those meetings, high above Sydney’s CBD, over coffee and warmed banana bread.