News
On 27 April, Network Finance Company, the financing entity of Endeavour Energy Group (Baa1), began taking indications of interest for a new Australian dollar denominated, long seven-year, senior-secured transaction. Offered in either or both fixed- and floating-rate note formats, the deal is being marketed at 130 basis points area over swap benchmarks. ANZ, Bank of China and Commonwealth Bank of Australia are leading.
Transurban Queensland Finance (BBB by S&P), a wholly owned subsidiary of Transurban Queensland Group, launched a new Australian dollar denominated, 10.25-year transaction on 27 April. Indicative price guidance for the deal, which is expected to price on the day of launch, is 170 basis points area over semi-quarterly swap. ANZ, Commonwealth Bank of Australia and SMBC Nikko are leading.
On 27 April, ASB Bank (AA-/A1/A+) launched a new, five-year, fixed-rate deal. The forthcoming transaction has indicative price guidance of 55-60 basis points over mid swap. Pricing is expected on 29 April and Commonwealth Bank is leading.
On 26 April, Pepper Group launched its residential mortgage-backed securities (RMBS) deal, PRS 29. Total capped volume for the deal is A$750 million (US$583.4 million) and is expected to price on 28 April. Westpac Institutional Bank is arranger and lead manager alongside Commonwealth Bank of Australia, Macquarie Bank and National Australia Bank.
Australian Gas Networks (AGN) says the positive response parent company Australian Gas Infrastructure Group received to a 2020 domestic transaction encouraged its own return – and says it is likely to be back for more in 2021. AGN’s 22 April deal was its first in the Australian dollar market since 2014.
On 26 April, CNH Industrial Capital Australia mandated ANZ to engage investors regarding an Australian dollar denominated asset-backed securities (ABS) transaction, CNH Industrial Capital Australia Receivables Trust Series 2021-1. Indicative total volume for the deal is A$300 million (US$232.9 million), with the potential to upsize, and is expected to launch in the week beginning 3 May.
On 26 April, Firstmac launched its residential mortgage-backed securities (RMBS) deal, Firstmac Mortgage Funding Trust No. 4 Series 2021-2. Indicative volume for the deal is A$1 billion (US$775.8 million), with the ability to upsize, and is expected to price on 30 April. ANZ is arranger and lead manager alongside National Australia Bank, Standard Chartered and SMBC Nikko.
On 26 April, Transurban Queensland (BBB by S&P) began taking indications of interest for a potential Australian dollar denominated, 10.25-year transaction. The deal is being marketed at 170 basis points area over semi-quarterly swap. ANZ, Commonwealth Bank of Australia and SMBC Nikko are leading.
The Australian Prudential Regulation Authority released its draft prudential practice guide on climate-change financial risks for consultation on 22 April, setting out voluntary prudential management related to governance, risk management, scenario analysis and disclosure. Some industry participants are urging the regulator to use this as a first step to mandatory risk disclosure.
Deal activity in Australasian markets continued to be robust in the third week of April. Highlights included Asian Development Bank's gender-bond Kangaroo, two subordinated deals from financial institutions and Kāinga Ora - Homes and Communities' return to syndicated issuance.
On 23 April, Australian Finance Group (AFG) mandated ANZ and National Australia Bank to engage investors regarding a potential residential mortgage-backed securities (RMBS) deal, AFG 2021-1, from its prime programme.