News
The last week of October saw a pair of Kangaroos and a trio of domestic deals, including a three-tranche issue from the Australian Prime Property Fund Retail with three separate maturities. The New Zealand markets also saw deal action after Genesis Power priced NZ$50 million last week, ushering in a new transaction by Meridian Energy and prospects of a deal by Kiwibank.
Western Australian Treasury Corporation (WATC) (AAA/Aaa) priced A$1 billion (US$1.04 billion) new June 2016 benchmark syndicated transaction on November 1. This is the third syndicated issue from WATC this year, following its A$1 billion (US$1.04 billion) July 2017 notes priced in May 2012 and A$200 million June 2016 notes priced in June 2012.
DBNGP Finance (DBP) has priced A$300 million October 2019 MTN, to refinance the firm's remaining A$170 million April 2013 bonds and other "higher priced debt facilities".
The Australian Central Credit Union's (ACCU's) Light Trust No. 4 upsized to A$450 million upon pricing November 2. Preliminary ratings were assigned on November 1 to the transaction of prime residential mortgage-backed securities (RMBS) originated by the Australian Central Credit Union (ACCU) with an initial volume of A$400 million. The securitisation, Light Trust No. 4, is a closed portfolio with no further loans assigned after the closing date, and QBE Lenders Mortgage Insurance will provide 100 per cent of the LMI cover to the pool.
The South Australian Government Financing Authority (AA/Aa1/AA+) (SAFA) has announced a plan to increase its A$1.294 billion (US$1.348 billion) 5 per cent May 20 2021 bond line by A$750 million in November 2012.
A wave of significant changes to the global UBS Investment Bank (UBS) business that are the basis of an expected 10,000 reduction in headcount do not affect the Australian operation, the bank says. A spokesperson tells KangaNews the Australian business is already structured in line with global goals, so moves which already include the shuttering of UBS's supranational, sovereign and agency (SSA) business in London do not necessitate changes locally.
On November 1, Export Development Canada (EDC) (AAA/Aaa) increased its A$750 million (US$778 million) 3.25 per cent Kangaroo line maturing in August 2017 by A$250 million.
Suncorp-Metway (Suncorp) priced A$600 million new five-year benchmark covered bond transaction on November 1 2012. This is the second covered bond issue from Suncorp, following its A$1.6 billion (US$1.66 billion) dual-tranche issue priced in May 2012, which included A$1.1 billion notes maturing in December 2016 and A$500 million notes maturing in December 2014.
On November 1 Kiwibank (A+/Aa3) announced it is preparing the offer of up to NZ$150 million (US$123 million) of subordinated notes that will be structured to be recognised as T2 regulatory capital. Craigs Investment Partners is acting as arranger, and along with Kiwibank is also joint lead manager on the deal.
Genesis Power Limited sold NZ$50 million (US$41 million) fixed rate seven-year domestic bonds.
In its annual results presentation for the 2011/12 financial year, National Australia Bank (NAB) revealed an extension of the duration of its term funding book – and an increase in the average cost of term funding. The weighted average maturity of NAB's term wholesale portfolio at September 30 2012 was 3.7 years, up from 3.1 years six months earlier.
National Australia Bank (NAB) has announced an offer to buy back all its remaining AUD-denominated Australian government-guaranteed bonds with remaining maturities of longer than a year, as part of a global offer to retire its guaranteed debt. The domestic offer covers a total of A$4.16 billion (US$4.31 billion) of bonds with maturity dates in December 2013 and the first two months of 2014.