News
Broadening demand for residential mortgage-backed securities (RMBS) enabled the transaction priced by AMP Bank on August 24 to be upsized by A$300 million (US$312 million), the deal's arranger said. Participation by investors both domestically and offshore allowed the full capital structure to be placed and the Australian Office of Financial Management (AOFM) to be scaled out of the transaction entirely.
Suncorp Bank (Suncorp) has priced its first 2012 transaction in the residential mortgage-backed securities (RMBS) market on August 30 with its Apollo Series 2012-1 Trust deal. The deal launched August 27 with an indicative volume of A$750 million (US$780.7 million) across two rated and one unrated trances.
Rentenbank hopes the forthcoming formalisation of its guarantee from the German sovereign will help it to widen its investor base and add price tension to its curve in global markets, including in Australian dollars. But although the agency identifies some early tightening in its secondary spreads following the guarantee announcement, it is also realistic about the likely gains to be made from having an explicit sovereign guarantee.
The most recent transaction to price in the Kauri market attracted a diverse spread of demand from both domestic and international investors, sources connected with the deal tell KangaNews. International Finance Corporation (IFC) issued a new line of Kauri bonds on 21 August, pricing NZ$300 million (US$243.9 million) of fixed-rate notes maturing on September 5 2017.
Deal flow returned to the Australian market after a week-long hiatus with a diversity of borrowers comprising a Kangaroo, a pair of corporates and two banking sector transactions. The Australian securitisation market also saw deal action as a single trade priced, while across the Tasman one Kauri was issued.
National Australia Bank (NAB) (AA-/Aa2/AA-) priced its fourth domestic benchmark transaction of 2012 on August 23, in the form of a new line of floating rate notes due March 4 2016. NAB most recently visited the domestic public market in June this year when it topped up a February 2017 dual tranche domestic bond by A$1.5 billion (US$1.6 billion), at 165 basis points over swap. NAB is the sole lead for the new deal.
Caterpillar Financial Australia (Caterpillar) (A/A2/A) tripled the volume of its fourth transaction in the AUD market in 2012. The deal launched on August 23 at A$100 million (US$105.1 million) of new two-year bonds and adds to the A$450 million Caterpillar has already placed this year.
Hybrid issuance successfully returned to the Australian market in August thanks in part to a groundswell of support for corporate transactions from institutional investors, sources connected with recent deals say. Demand was sufficient for APA Group (APA) and Crown to add A$125 million (US$130.8 million) apiece to their retail deals, following an even larger upsize by Caltex Australia (Caltex) at the start of the month.
AMP Bank returned to the residential mortgage-backed securities (RMBS) market on August 24 with the upsized Progress Trust 2012-2 transaction. The deal had indicative volume of A$500 million (US$524.2 million) across four tranches, but closed with an aggregate size of A$800 million.