What has triggered all the investor meetings? After a relatively quiet few weeks, debt investors have lined up a series of investors meetings and new debt issues are flowing thick and fast. Perhaps borrowers are keen to issue debt at historically low rates and before the US Fed raises its interest rates, or perhaps investor appetite for debt has jumped sharply higher after some severe equity market volatility.
After the Australian Office of Financial Management announced it was selling $4Bn of a new benchmark 24 year Commonwealth government bond other debt announcements quickly followed. Here they are:
WATC to tap 2025s
Western Australian Treasury Corporation (WATC) announced it had mandated several banks for a potential increase to its 5.0% July 2025 line of bonds. This existing series has $2.1Bn already on issue and was last increased in early June when WATC issued $300m at ACGB + 63bps. WATC has a AA+/Aa1 rating and is on negative outlook by both S&P and Moody’s. The tap comes just over a week after WATC published its updated $6.4Bn borrowing programme for the 2015/2016 financial year.
Bank of Queensland: Another hybrid issue in the offing?
Bank of Queensland announced it had mandated several banks to arrange a series of investor meetings in mid-October. These meeting are usually a prelude to a capital raising and some sort of announcement can be expected shortly. The bank last issued floating rate capital notes in May 2015 with a 2022 mandatory conversion clause and a first call date in May 2020 at BBSW + 435bps. Bank of Queensland has an A-/A3 rating from S&P and Moody’s.
ANU to return after lengthy absence
The Australian National University announced it had mandated National Australia Bank and ANZ to arrange a series of domestic investor meetings in late-October. These meeting are usually a prelude to a capital raising and an announcement would be expected shortly. The ANU has some debt outstanding in the form of 25 year unsecured indexed annuity bonds which were issued in October 2004 but it has not been an active issuer in the way the Universities of Sydney and Melbourne have been, with the University of Sydney last issuing 10y fixed-rate bonds in mid-August.
Transurban seeks offshore funding
Transurban has mandated several banks to arrange a series of offshore investor meetings in mid-October with a capital raising expected shortly after. Its subsidiary, Transurban Queensland, a 62.5%-owned BBB-rated subsidiary, last issued $900m of 10y, 12y, 15 y bonds in early July at undisclosed rates. Transurban is rated BBB+/Baa1/A- (stable).
IMB Bank RMBS issue likely
IMB Bank, formerly known as the Illawarra Mutual Building Society, has recently held investor meeting in London. An AUD-denominated transaction under the Illawarra RMBS programme is expected to follow.