News
In a further sign of the growing interest of international intermediary banks in the Australian semi-government sector, Bank of America Merrill Lynch (BAML) and Barclays Capital (BarCap) have been added to Queensland Treasury Corporation (QTC)'s fixed interest distribution group. Earlier this month, New South Wales Treasury Corporation (TCorp) expanded its own dealer groups with the addition of BNP Paribas.
Primary Health Care (Primary) (NR) has launched a new A$125 million (US$110.75 million) five-year corporate bond issue, which is being targeted at retail investors. It is the first transaction to be issued under the Australian Securities and Investments Commission (ASIC) prospectus relief aimed at facilitating retail participation in the Australian corporate bond market.
Rentenbank (AAA/Aaa/AAA) increased its 6.5 per cent April 2017 Kangaroo by A$250 million (US$221.7 million) on August 26, in what was the issuer's first transaction since April and the ninth Kangaroo issued this month. The tap takes the total line size to A$500 million.
On August 24, the Royal Bank of Scotland Australia Branch (RBS Australia) (A+/Aa3) issued a new A$1.5 billion (US$1.32 billion) three-year fixed and floating rate deal, upsized from an initial target volume of A$500 million. This transaction was the fifth to come from the local branch of an offshore bank this month.
Eurofima (AAA/Aaa) increased its 5.5 per cent June 2020 Kangaroo by A$250 million (US$222.55 million) on August 23, in what was the issuer's first Kangaroo transaction in six months and just its second since May 2008. The new transaction takes the total line size to A$750 million.
Australian deal flow in the past week continued the recent trend of centring on issuance from international names with local branches of offshore banks and supranational, sovereign and agency (SSA) sector Kangaroos again active. For local credits the most significant activity came in the securitisation space where one large deal priced and the pipeline started to produce flow.
Bank Nederlandse Gementeen (BNG) (AAA/Aaa/AAA) launched its second Kangaroo deal in quick succession on August 19, although the expected A$100 million (US$89.5 million) increase to its September 2015 line will be just the issuer's fourth Australian transaction since 2006. The deal also marks a return to the market for sole lead-manager BNP Paribas, which last took top line on a Kangaroo in July 2002.
On August 19 Macquarie Securitisation (Macquarie) launched a new A$500 million (US$448.35 million) residential mortgage-backed securities (RMBS) transaction in what is likely to be the third such deal in a little more than a week, with market sources expecting more to follow. The transaction – PUMA Masterfund P-16 Series – will be the sponsor's first public issue in more than two years, and is expected to price early next week.
Following the addition of BNP Paribas Sydney Branch (BNP Paribas) to New South Wales Treasury Corporation (TCorp)'s domestic and global exchangeable dealer panels on August 16, the state treasury corporation has confirmed speculation that additional intermediaries are ramping up their coverage of the Australian semi-government market and may also be added to the panels in due course.