News
Westpac Banking Corporation (Westpac) tells KangaNews in the wake of its first residential mortgage-backed securities (RMBS) transaction since September last year – and one of the largest RMBS deals in the domestic market – that it expects other RMBS issuers to follow after it set a new pricing benchmark.
Unrated data-centre provider NEXTDC launched a new senior-unsecured bond deal on June 2 in wholesale format, in what will be the first such transaction in recent years to be arranged in Australia by a big-four bank – in this case National Australia Bank (NAB). The forthcoming transaction has five-year tenor with an issuer call option starting after two-and-a-half years, and has indicative minimum volume of A$30 million (US$27.9 million).
The new treasurer of Western Australia (WA), Mike Nahan, says the state is well placed to manage the transition to the resources production phase despite what he sees as an ongoing reliance on mining royalties to supplement WA's small share of the national GST pot. Elsewhere, Western Australian Treasury Corporation (WATC) notes a reduced dependence on short-term markets in its post-budget borrowing forecast, even as growth in its funding programme peaks.
The last full week of May finished with a steady flow of Australian deals. Securitisation activity also picked up with two new deals priced by Westpac Banking Corporation and Resimac. On the other side of the Tasman Sea New Zealand dollar activity dropped off entirely.
Westpac Banking Corporation (Westpac) priced a new residential mortgage-backed securities (RMBS) transaction on May 30. According to a ratings report by Standard and Poor's Rating Services (S&P) on May 26, Westpac's Series 2014-1 WST Trust – a securitisation of prime residential mortgages – had a provisional volume of A$750 million (US$692.8 million) across three tranches.
ALE Direct Property Trust (ALE Direct Property) (Baa2) mandated and priced a new 3.25-year and 6.25-year dual-tranche domestic deal on May 29. ALE Direct Property is a subsidiary of ALE Property Group (ALE). ALE most recently visited the domestic market with a corporate hybrid deal in March 2010. Those notes have an initial maturity date of August 2014.
Bank Nederlandse Gemeenten (BNG Bank) (AA+/Aaa/AAA) mandated and priced an increase to its existing A$700 million (US$648.2 million) May 2024 Kangaroo bond on May 28. According to KangaNews data, the borrower's most increase to this line priced on May 12 this year. That transaction had a volume of A$25 million and pricing of 84 basis points over Australian government bond.
On May 28, KfW Bankengruppe (KfW) priced a new transaction in the Australian domestic market. The deal is the third tap to KfW's August 2017 Kangaroo line which currently has A$1.25 billion (US$1.16 billion) outstanding.
Rentenbank (AAA/Aaa/AAA) priced a new transaction in the Australian domestic market on May 27. According to KangaNews data, the deal is the first tap to the borrower's July 2019 line which was priced for a volume of A$300 million (US$277.1 million) in January this year, at 66.75 basis points over Australian government bond.
Resimac's forthcoming residential mortgage-backed securities (RMBS) transaction backed by prime residential mortgages will comprise five tranches, with expected ratings assigned to the new deal on May 26.