News
Wesfarmers (BBB+/Baa1) is seeking a minimum of A$250 million (US$208.55 million) in a new five-year domestic medium-term note (MTN) transaction it launched on September 3. The deal, which has indicative pricing of 275 basis points over swap and is expected to price by September 4, will be the issuer's first public domestic bond transaction since it sold A$250 million of three-year paper in June 2005.
Treasury Corporation of Victoria (TCV) (AAA/Aaa/AAA) priced its first ever bookbuilt transaction on September 2, capping the size of the new June 2020 line at A$1.5 billion (US$1.25 billion) a day after launch. The deal priced at 80 basis points over the April 2020 Australian government bond – towards the tighter end of the indicative range but a slight premium to TCV's existing curve.
Kangaroo market pricing continued to tighten dramatically with the pricing of a A$350 million (US$291.8 million) increase to European Investment Bank (EIB)'s (AAA/Aaa/AAA) 2014 line on September 1. The transaction came to market at 60 basis points over the June 2014 Australian government bond, a level which rate sheet data indicates equates to the high teens basis points over swap.
Despite facing a significantly smaller funding task for the 2009/10 financial year than its peers in New South Wales (NSW) and Queensland, Treasury Corporation of Victoria (TCV) (AAA/Aaa/AAA) followed those states' lead by launching its first benchmark bond deal to be placed via syndication on September 1. Pricing on TCV's 6.25 per cent June 2020 line is expected on September 2.
On August 31 the Australian Office of Financial Management (AOFM) announced that the beneficiaries of the third selection round for residential mortgage-backed securities (RMBS) backed by the debt management agency will be non-authorised deposit-taking institutions (ADIs).
On Friday August 28 two asset-backed security deals (ABS) priced - Macquarie Countrywide Trust (MCW) brought the first Australian commercial mortgage-backed securities (CMBS) transaction since 2007, while Greater Building Society issued the last expected Australian Office of Financial Management (AOFM)-backed deal in the current RFP round.
On August 27 Bank of Scotland Australia Branch (BoS Australia) (A+/Aa3/AA-) priced a A$1 billion 15-month transaction supported by the Australian commonwealth government guarantee, selling A$250 million of fixed and A$750 million of floating notes at 20 basis points over swap and the bank bill swap rate (BBSW).
On August 25 ING Bank (Australia) (ING) (AA-) priced A$1.6 billion of fixed and floating rate notes guaranteed by the Australian sovereign, at the expected price of 36 basis points over the bank bill swap rate (BBSW) and swap.
Three recent transactions in the asset-backed security (ABS) space are leading to nascent optimism about the Australian ABS market for the first time in many months. The deals are being seen as sign of thawing among investors in the broader market, and hopes are high that this might lead to standalone RMBS deals without the backing of the Australian Office of Financial Management (AOFM).
On August 24 ING Bank (Australia) (ING) (AA-) launched a benchmark-sized August 2013 government-guaranteed transaction, with price guidance of 36 basis points area over the bank bill swap rate (BBSW) and/or swap. The deal, led by Commonwealth Bank of Australia, J.P. Morgan and UBS and offering both fixed and floating rate tranches, is expected to price on August 25.
On Friday August 21 KfW Bankengruppe (AAA/Aaa/AAA) priced a A$300 million (US$252 million) increase to its 5.50 per cent August 2013 Kangaroo bond. The tap, led by TD Securities and UBS, brings the total outstanding in this line to A$700 million and total Kangaroo issuance this year from all issuers to A$9.25 billion.
On Friday August 21 Rabobank Nederland New Zealand Branch (Rabobank NZ) (AAA/Aaa) closed a NZ$100 million (US$68 million) retail issue, maturing in September 2014. The transaction, which was led by ANZ and BNZ Capital, priced at 94 basis points over the benchmark mid-swap rate, wider than the issuer's A$250 million tap of its 2012 line, which priced on 27 July.