New Zealand

Auckland Council appointed banks on Monday to arrange a roadshow for a euro benchmark with an intermediate to long maturity, in what will be its first bond in the currency since 2017

Following last Friday’s Asian Development Bank Kiwi dollar deal, the Inter-American Development Bank and International Finance Corporation both came to the Kauri market on Tuesday to tap a pair of mid-curve notes. With demand for mid-curve Kauri products high, bankers expect more issuers to follow as funding remains attractive for dollar-based borrowers.

The Asian Development Bank returned to the Kiwi dollar market to print its largest Kauri deal since January 2018 this week. With the Inter-American Development Bank and International Finance Corporation set to follow with a pair of taps in the coming days, bankers are expecting a busy few weeks in the market as investors react to the recent surprise interest rate cut from the Reserve Bank of New Zealand.

Westpac New Zealand was able to steer its first green bond through the market on Tuesday, even as yields plummeted on the back of suggestions that the European Central Bank could be preparing new stimulus measures. The deal was the issuer’s first fixed rate senior bond in euros for over nine years.

Bank of New Zealand (BNZ) gave investors the chance to put some euros into a senior bond on Friday and was well subscribed for its efforts.

Citi has appointed Marc Luet to be country officer for Australia and head of the bank's Australia and New Zealand cluster.

Bank of New Zealand (BNZ) has mandated leads for a roadshow ahead of a possible euro senior unsecured or covered bond benchmark.

The Reserve Bank of New Zealand cut rates for the first time since 2016 to a record low of 1.5% on Wednesday. The RBNZ Monetary Policy Committee decision was the first under its new set-up, which included three external members on the committee.

Rating: A1/AA-/AA-

Westpac issued the first dollar covered bond of the year this week, while its New Zealand subsidiary hit the euro market following the demand unearthed by an earlier deal from ANZ New Zealand.

Westpac New Zealand drew strong support for its five year covered bond on Thursday which took advantage of the strong demand and performance identified in ANZ New Zealand’s earlier deal.

Euro covered bonds issued by ANZ New Zealand, Caffil and National Bank of Canada on Tuesday provided “the least worst option” in a spread widening environment, said bankers.