Rentenbank (AAA/Aaa/AAA) increased its 6.5 per cent April 2017 Kangaroo by A$250 million (US$221.7 million) on August 26, in what was the issuer's first transaction since April and the ninth Kangaroo issued this month. The tap takes the total line size to A$500 million.
On August 24, the Royal Bank of Scotland Australia Branch (RBS Australia) (A+/Aa3) issued a new A$1.5 billion (US$1.32 billion) three-year fixed and floating rate deal, upsized from an initial target volume of A$500 million. This transaction was the fifth to come from the local branch of an offshore bank this month.
Eurofima (AAA/Aaa) increased its 5.5 per cent June 2020 Kangaroo by A$250 million (US$222.55 million) on August 23, in what was the issuer's first Kangaroo transaction in six months and just its second since May 2008. The new transaction takes the total line size to A$750 million.
Australian deal flow in the past week continued the recent trend of centring on issuance from international names with local branches of offshore banks and supranational, sovereign and agency (SSA) sector Kangaroos again active. For local credits the most significant activity came in the securitisation space where one large deal priced and the pipeline started to produce flow.
Bank Nederlandse Gementeen (BNG) (AAA/Aaa/AAA) launched its second Kangaroo deal in quick succession on August 19, although the expected A$100 million (US$89.5 million) increase to its September 2015 line will be just the issuer's fourth Australian transaction since 2006. The deal also marks a return to the market for sole lead-manager BNP Paribas, which last took top line on a Kangaroo in July 2002.
On August 19 Macquarie Securitisation (Macquarie) launched a new A$500 million (US$448.35 million) residential mortgage-backed securities (RMBS) transaction in what is likely to be the third such deal in a little more than a week, with market sources expecting more to follow. The transaction – PUMA Masterfund P-16 Series – will be the sponsor's first public issue in more than two years, and is expected to price early next week.
Following the addition of BNP Paribas Sydney Branch (BNP Paribas) to New South Wales Treasury Corporation (TCorp)'s domestic and global exchangeable dealer panels on August 16, the state treasury corporation has confirmed speculation that additional intermediaries are ramping up their coverage of the Australian semi-government market and may also be added to the panels in due course.
On August 18 UBS Australia Branch (UBS Australia) (A+/Aa3/A+) priced a new three-year deal having upsized to A$1.25 billion (US$1.13 billion) from a launch target of A$500 million. This transaction is UBS Australia's first domestic issue and the fourth Australian market deal in two weeks to come from the domestic branch of an international parent bank.
Five months after roadshowing in Australia with a desire to become a regular issuer in the market, on August 18 Kommuninvest (AAA/Aaa) priced its debut Kangaroo transaction. The Swedish local government funding agency issued a A$200 million August 2015 bond, in what was the second Kangaroo debutant from the supranational, sovereign and agency (SSA) sector in 2010.
Lead managers on the six-year issue launched by Greenstone Energy (Greenstone) (NR) on August 13 say that although the issuer is an unrated credit, they believe the familiar name of the company combined with pent-up retail demand will attract investors in large numbers. Greenstone is offering a minimum of NZ$100 million (US$70.1 million) in the deal with room to upsize by up to the same amount.
On August 17, HSBC Sydney Branch (HSBC Sydney) (AA/Aa2/AA) priced A$500 million (US$448.8 million) in a three-year fixed rate transaction – its first issue in two years. The bonds priced at their indicative margin of 95 basis points over semi-quarterly swap, having launched the day before.
On August 16, Bank of Queensland (BOQ) launched its second residential mortgage-backed securities (RMBS) transaction of 2010, in what is also likely to become the first large RMBS deal in Australia since early July. BOQ's Series 2010-2 REDS deal has an indicative volume of A$750 million (US$669.7 million) and is expected to price by August 19.