US Private Placement Market on Rise
Antipodes Help US Private Placement Market To Record
Australia and New Zealand aren’t just boosting the global games of rugby and cricket. The two nations have helped the U.S. private placement market reach a record year of issuance.
According to J.P. Morgan, both countries account for 16% of supply in 2011 to date where volumes of US$46.5 billion have surpassed the 2003 record of US$45.7 billion. Last year, Australia and New Zealand were responsible for 10% of the US$41.6 billion market.
Notable transactions in 2011 include biopharma CSL’s US$750 million private placement across 7, 10, 12 and 15 year maturities, Melbourne Airport’s US$600 million transaction across 10, 12 and 15 year tenors and gas distributor Envestra’s dual currency offering of US$240 million and A$115 million tranches spanning four maturities between 10 years and 30 years.
In September, Metcash completed its first funding deal outside of Australia by placing US$225 million at 7, 8 and 12 year tenors while New Zealand’s national power grid owner-operator Transpower placed US$380 million of senior unsecured notes at 10, 12 and 15 year maturites to 15 U.S.-based institutions.
And the outlook for 2012? J.P. Morgan reckons issuers have lined up transactions to be launched at the onset of the new year, which are expected to be well received by investors who have refreshed budget allocations.