News
In the last two weeks HSBC Sydney Branch has priced a total of A$350 million (US$322 million) of fixed and floating rate notes, in three separate transactions.
The Australian prime residential mortgage-backed securities (RMBS) market appears to be holding steady at 110 to 120 basis points over one-month bank bill swap rate (BBSW), with the last three RMBS transactions featuring prime MBS only all pricing within that range.
On July 25 University of Wollongong (UOW) (AA) issued A$42.5 million (US$39 million) of CPI-linked indexed-annuity bonds, maturing on August 5 2038. The transaction was led by nabCapital.
New South Wales Treasury Corporation (TCorp) has announced the first installment of its capital-indexed bond (CIB) borrowing programme, unveiled on June 27. The semi-government authority will issue A$50 million off its November 20 2035 line on August 7 2008. UBS Australia will manage the bookbuild.
Toyota Finance New Zealand (AAA/Aaa) priced a NZ$50 million (US$36.42 million) fixed and floating rate 2011 transaction on August 1 through lead managers ANZ and Deutsche Bank New Zealand.
On July 24 HSBC Sydney Branch (AA/Aa1) priced A$200 million of fixed rated notes, which settled on July 30 and mature on November 3 2009, via lead manager nabCapital.
Adelaide Bank has priced its second publicly-rated asset-backed deal this year via Torrens Series 2008-3 – a A$502.5 million (US$475.3 million) RMBS transaction maturing in October 2039.
National Australia Bank (AA/Aa1/AA) (NAB) has followed its July 25 announcement of a A$830 million (US$795.14 million) writedown of its investments in US residential mortgages with a downsizing of the 2011 bond deal it priced on July 22, from A$850 million to A$260 million.
Rabobank New Zealand (AAA/Aaa) priced a 2011 domestic transaction on July 23. The Bank of New Zealand-led deal was finalised at its initial size of NZ$100 million (US$75.85 million) and sold at the bottom end of its indicative price range, 22 basis points above mid-rate swap.
NOTE: THIS DEAL WAS DOWNSIZED INBETWEEN PRICING AND SETTLEMENT. CLICK HERE TO READ ABOUT THE FINAL DEAL Institutional investors made up half the book on the July 22 increase to National Australia Bank (AA/Aa1/AA) (NAB)’s 2011 domestic fixed and floating bond. The bank sold A$850 million (US$829.69 million) of new paper at 90 basis points above swap, making the line the first Australian corporate bond of over A$3 billion.
With deal flow elsewhere reduced to a trickle, market talk has turned to T1 securities, with ANZ Banking Group (ANZ) and National Australia Bank (NAB) said to be looking to follow Suncorp Metway, Macquarie Bank and Westpac Banking Corporation (Westpac) as domestic hybrid issuers this year.
Australian Office of Financial Management (AOFM) revealed its new investment mandate on July 22, confirming that triple-A rated Kangaroos are included in a short list of assets it will invest in using the proceeds of the forthcoming increase in sovereign borrowing.