News
Australian-origin securitisation flow continues as provisional ratings have been assigned to a pair of forthcoming auto-backed deals. These are an Australian dollar issue by Bank of Queensland (BOQ),and Macquarie Leasing (Macquarie)'s second predominantly-US dollar asset-based securities issue of 2013.
Hyundai Capital Services (Hyundai) issued its first-ever Kangaroo deal late last week in what was the year's first transaction into the Australian market from an Asian credit borrower and from an international non-financial corporate. Leads say Australian dollar issuance levels and Hyundai's strategy for investor diversity is what brought the borrower into the market.
On May 14, Bank of America Corporation (BoA) (A-/Baa2/A) priced a new 5.25-year fixed and floating rate Kangaroo issue. According to KangaNews data BoA priced its previous issue on August 2010, a dual-tranche three-year fixed and floating rate note with a volume of A$1.2 billion (US$1.19 billion) and pricing of 210 basis points over swap.
On May 14, Export Development Canada (EDC) (AAA/Aaa) priced a new five-year Kangaroo transaction. According to KangaNews data EDC priced its previous issue in November 2012 with volume of A$250 million (US$249.61 million) and pricing of 67.25 basis points over the July 2017 ACGB.
A relatively quiet period for Australian dollar issuance ended with a bang in the first full week in May as a host of transactions priced including deals from high-grade and credit Kangaroo borrowers and local banks in senior unsecured and securitised format. The New Zealand market remained quiet but ratings agencies were kept busy with a raft of new high-yield assignments.
Following Bendigo and Adelaide Bank's (BEN) A$600 million (US$603.9 million) floating rate note (FRN) bond issue, which priced on May 8, the bank tells KangaNews it hopes to further increase its use of wholesale markets – especially in senior unsecured format – in order to diversify its funding sources.
A third syndication pricing for an Australian semi-government issuer inside a week was announced on May 10 as Queensland Treasury Corporation (QTC) (AA+/Aa1/AA) tapped its 2023 fixed-rate benchmark. QTC's transaction follows recent syndicated issue announcements by New South Wales Treasury Corporation and Western Australian Treasury Corporation.
Suncorp-Metway (Suncorp) priced a new residential mortgage-backed securities (RMBS) transaction on May 10. The deal, which was upsized to A$1.15 billion (US$1.16 billion) from an indicative A$750 million, follows the April placement by Suncorp of a A$750 million senior unsecured floating-rate note, also by the Suncorp Bank entity, and A$700 million of tier two notes out of Suncorp Group.
On May 9, Hyundai Capital Services (Hyundai) (BBB+/Baa1) priced a new four-year Kangaroo deal, marking a number of firsts in the market. It is the issuer's debut Kangaroo, and also the first transaction into the Australian market in 2013 from an Asian credit borrower and from an international non-financial corporate.
On May 9, Western Australian Treasury Corporation (WATC) (AAA/Aaa) priced a new five-year floating rate note (FRN) deal. The deal is WATC's first bookbuilt transaction since its benchmark issue in November 2012 which had a volume of A$1 billion (US$1.02 billion) and pricing of 60.25 basis points over Australian government bonds.Joint lead managers on the forthcoming issue are Commonwealth Bank and National Australia Bank.
On May 9, Nederlandse Waterschapsbank (NWB) (AAA/Aaa) priced an increase to its 10-year Kangaroo issue in the first tap to the line since it was issued in April this year. This is also the first time NWB has issued more than a single Kangaroo transaction in a year sinfce 2007, according to KangaNews data.