News
HSBC Sydney priced A$750 million dual-tranche domestic senior, unsecured notes on November 7, which was the bank's second domestic issue of the year.
HSBC Sydney Branch (AA-/Aa2/AA) priced a five-year senior unsecured benchmark deal on November 7, which is the bank's second domestic transaction of 2012.
Both of the residential mortgage-backed securities (RMBS) deals to price in the Australian market in recent weeks closed with significant upsizes from launch volume, leads say. Deal participants believe this points to sustained demand for securitisation despite strong deal flow in August and September slowing significantly in Q4 so far.
More information has been released on the return of Telstra Corporation (Telstra) (A/A2/A) to the Australian dollar bond market. On November 7 the deal's lead group – comprising all four domestic major banks – disclosed launch volume of A$500 million (US$521.3 million) and indicative pricing of around 100 basis points over swap for the new, five-year issue.
The International Finance Corporation (IFC) (AAA/Aaa) has priced a A$350 million (US$364.9 million) tap to its 3.25 per cent July 2017 Kangaroo, taking the total outstanding in the line to A$1.15 billion.
While much of the country had its eyes on Flemington on November 6, the Reserve Bank of Australia (RBA) announced the cash rates would remain unchanged at 3.25 per cent. In advance of the announcement a majority of local economists were leaning towards expecting a 25 basis point cut, and views on the future direction are divergent.
A capital transaction priced on November 5 by a group of Australian mutual authorised deposit-taking institutions could lead to future pooled funding deals, the group hopes – including in senior unsecured and covered bond format. The new deal, issued by the Australian Mutual Investment Trust (AMIT), will re-finance lower tier two debt issued by 17 mutuals in 2006.
Coca-Cola Amatil (CCA) (A-/A3) priced its first Australian dollar domestic transaction since 2006 on November 6. The deal is for seven-year, fixed rate paper.
GPT Funds Management (GPT Funds) (A-) has priced a new five-year transaction on November 5, upsizing to to A$200 million (US$207.1 million) and tightening to 175 basis points over semi-quarterly coupon-matched asset swap. The deal launched earlier the same day at a minimum volume of A$100 million (US$103.4 billion) and an indicative price of 185 basis points over semi-quarterly coupon-matched asset swap.
Telstra Corporation (Telstra) (A/A2/A) priced a new fixed rate benchmark issue into the domestic market on November 8. According to KangaNews data the company's last issue into the public domestic market was in May 2011, when it priced a nine-year transaction for A$150 million (US$155.1 million) at 160 basis points over semi-quarterly coupon-matched asset swap.
On October 30 Australian Prime Property Fund Retail (APPF Retail) priced a A$350 million (US$362.1 million), three-tranche fixed-rate senior unsecured domestic transaction. According to KangaNews data, this is the first corporate bond deal in the Australian domestic market to have more than two tranches since 2007.
In its annual results, presented on November 5, Westpac Banking Corporation (Westpac) says it achieved access to a range of new wholesale investors in the 2011/12 financial year. As with the other major banks to report in recent weeks, Westpac also emphasises the strength of its deposit and capital bases, its relatively low reliance on short-term funding, and the growth of its liquid assets book.