News
On 20 May, following the government’s budget update, New Zealand Debt Management (NZDM) confirmed a NZ$30 billion (US$21.5 billion) borrowing requirement for the 2021/22 financial year – unchanged from its half-year economic and fiscal update from late 2020. NZDM also confirmed that its 2020/21 funding task remains at NZ$45 billion.
On 20 May, ING Bank Australia mandated Macquarie Bank to engage investors regarding a refinancing of its Class A note from its IDOL 2014-1 residential mortgage-backed securities (RMBS) issue.
HSBC Bank Sydney Branch (HSBC Sydney) (AA-/Aa3) began taking indications of interest for a new three-year, domestic, floating-rate note, benchmark transaction on 20 May. The deal is being marketed at 50 basis points area over three-month bank bills, according to lead managers ANZ, Commonwealth Bank of Australia, HSBC, National Australia Bank and Westpac Institutional Bank.
On 18 May, Wisr launched its debut consumer and personal loans asset-backed securities (ABS) deal, Freedom Trust 2021-1. The transaction is capped at A$225 million (US$175.4 million) and is expected to price on the day after launch. National Australia Bank is arranger.
The weeks prior to the end of the Reserve Bank pf Australia’s term funding facility offer a window of opportunity for offshore financial institutions to execute Australian dollar deals before technical conditions potentially change, lead managers. A recent Kangaroo from Barclays provides a compelling case study.
On 18 May, Motor Trade Finance (MTF) mandated Commonwealth Bank and Westpac New Zealand to arrange a series of investor meetings beginning 24 May regarding a New Zealand dollar denominated, auto asset-backed securities (ABS) deal.
Liberty Financial (BBB- by S&P) launched a new five-year, Australian dollar denominated, senior-unsecured, floating-rate note, benchmark transaction on 18 May. The deal is being marketed at 255-265 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to lead managers Deutsche Bank, National Australia Bank and Westpac Institutional Bank.
On 18 May, China Everbright Bank Sydney Branch (China Everbright Sydney) (BBB+/Baa2/BBB) launched a new three-year, Australian dollar denominated, senior-unsecured, floating-rate note, benchmark transaction. Indicative price guidance for the deal, which is expected to price on the day of launch, is 73 basis points area over three-month bank bills.