News
On September 10, BNG Bank (AA+/Aaa/AAA) priced a new five-year line in the Australian market. According to KangaNews data, this is the first time BNG Bank has issued in the five-year part of its Kangaroo curve since August 2011. That deal was a A$150 million (US$139.2 million) floating-rate note priced at 58 basis points over bank bill swap rate.
Bendigo and Adelaide Bank (BEN) (A-/A2/A-) priced its second senior-unsecured benchmark of the year on September 10. The bank sold A$750 million (US$702.7 million) of August 2016 notes in May, and also this year – in January – completed a A$300 million transaction in the tier-two market for Australia's first wholesale issue of these securities under Basel III rules.
The race for the title of Australian domestic intermediary – excluding Kangaroo issuance – for 2014 is wide open judging by the latest positions in the KangaNews league tables. The 20 banks to have led domestic deals in 2014-to-date account for A$51.8 billion (US$47.7 billion) of issuance, including self-led and syndicated semi-government transactions but excluding Kangaroo flow.
Bendigo & Adelaide Bank (BEN) (A/A2/A-) completed the bookbuild for its offer of convertible preference shares (CPS2) on September 8. The offer of additional tier-one qualifying capital was increased to A$250 million (US$220.3 million) from A$200 million, and was priced at 320 basis points over bank bill swap rate (BBSW), the tight end of the 320-330 basis points indicative margin range.
On September 9, unrated 360 Capital Group (360 Capital) launched a wholesale, senior-unsecured bond issue for up to A$75 million (US$69.6 million). According to an issuer statement, proceeds from the five-year fixed-rate note issue will be used to fund the takeover of the 360 Capital Diversified Property Fund as well as providing underwriting capital and additional working capital.
Market rotation and favourable funding costs drove General Property Trust (GPT) (A-/A3) to return to the domestic market, the borrower says. In the wake of the transaction, the issuer notes continued Australian dollar investor appetite both for its own name and the wider property sector.
The end of the busiest part of corporate reporting season saw transaction flow pick up once again in the Australian market, though non-financial corporates were once again overshadowed by bank and, especially, high-grade issuers. The most active sector was, once again, the triple-A Kangaroo market while semi-government names brushed off a recent regulatory change to planned liquid-asset rules.
United Overseas Bank Sydney Branch (UOB Sydney) (AA-/Aa1/AA-) priced a new four-year domestic transaction on September 5. The deal will be the issuer's third public transaction in Australia, having most recently come to market in November last year with a A$300 million (US$280.5 million) three-year floating-rate note according to KangaNews data.
GPT RE, the issuing entity of General Property Trust (GPT) (A-/A3), launched and priced a new transaction in the Australian domestic market on September 4. The new six-year line had indicative pricing in the area of 120 basis points over swap.
Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa1) priced a new November 2016 fixed-rate domestic benchmark bond on September 4. According to KangaNews data, the transaction is the borrower's second public deal in 2014 after a A$300 million (US$280.5 million) 10-year line issued on June 11. That transaction had pricing of 49.25 basis points over Australian government bond.