Wesfarmers (BBB+/Baa1) has priced its five-year domestic bond transaction a day after its September 3 launch, tightening the margin on the A$500 million deal to 260 basis points over swap and bank bill swap rate from the indicative level of 275 basis points over. The issuer sold A$400 million of fixed rate bonds and a further A$100 million of floating rate paper in the September 2014 maturity line.
The A$300 million (US$251.88 million) new 2014 Kangaroo line priced by Council of Europe Development Bank (CEB) (AAA/Aaa/AAA) on September 4 pushed Kangaroo issuance in 2009 to an aggregate of A$10.1 billion, just A$415 million short of the previous year's figure and on course to break 2006's all time record issuance – A$14.72 billion – from supranational, sovereign and agency (SSA) issuers.
WestLB AG Sydney (WestLB) (BBB+/A2/A-) priced the one year-plus deal it launched earlier the same day on September 3, with distribution of the A$650 million (US$541.06 million) transaction understood to have been predominantly domestic. Although the issuer also has A$500 million of bonds issued in 2004 set to expire on September 30 the new transaction is not believed to be a direct refinancing.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) has added A$200 million (US$167.58 million) to its March 2017 Kangaroo bond in the first transaction of that maturity in the Kangaroo market this year. Market sources say the increase priced at 30 basis points over swap or around 93 basis points over the February 2017 Australian government bond.
The margin of 89 basis points over swap and bank bill swap rate (BBSW) on the A$1.35 billion (US$1.13 billion) of four-year unguaranteed benchmark bond transaction priced by Commonwealth Bank of Australia (CommBank) (AA/Aa1/AA) on September 3 indicates the tightest level for a deal of this duration from a big four Australian bank issuer for nearly two years.
Council of Europe Development Bank (CEB) (AAA/Aaa/AAA) launched its second Kangaroo deal of the year on September 3, offering a new five-year maturity bond which lead managers Commonwealth Bank of Australia and TD Securities say will price "subject to market conditions". The same issuer inaugurated its 2013 Kangaroo in a A$300 million (US$250.11 million) deal on May 27 this year.
Wesfarmers (BBB+/Baa1) is seeking a minimum of A$250 million (US$208.55 million) in a new five-year domestic medium-term note (MTN) transaction it launched on September 3. The deal, which has indicative pricing of 275 basis points over swap and is expected to price by September 4, will be the issuer's first public domestic bond transaction since it sold A$250 million of three-year paper in June 2005.
Treasury Corporation of Victoria (TCV) (AAA/Aaa/AAA) priced its first ever bookbuilt transaction on September 2, capping the size of the new June 2020 line at A$1.5 billion (US$1.25 billion) a day after launch. The deal priced at 80 basis points over the April 2020 Australian government bond – towards the tighter end of the indicative range but a slight premium to TCV's existing curve.
Kangaroo market pricing continued to tighten dramatically with the pricing of a A$350 million (US$291.8 million) increase to European Investment Bank (EIB)'s (AAA/Aaa/AAA) 2014 line on September 1. The transaction came to market at 60 basis points over the June 2014 Australian government bond, a level which rate sheet data indicates equates to the high teens basis points over swap.
On Friday August 28 two asset-backed security deals (ABS) priced - Macquarie Countrywide Trust (MCW) brought the first Australian commercial mortgage-backed securities (CMBS) transaction since 2007, while Greater Building Society issued the last expected Australian Office of Financial Management (AOFM)-backed deal in the current RFP round.
On August 27 Bank of Scotland Australia Branch (BoS Australia) (A+/Aa3/AA-) priced a A$1 billion 15-month transaction supported by the Australian commonwealth government guarantee, selling A$250 million of fixed and A$750 million of floating notes at 20 basis points over swap and the bank bill swap rate (BBSW).
On August 25 ING Bank (Australia) (ING) (AA-) priced A$1.6 billion of fixed and floating rate notes guaranteed by the Australian sovereign, at the expected price of 36 basis points over the bank bill swap rate (BBSW) and swap.