News
Bendigo and Adelaide Bank’s return to capital-relief residential mortgage-backed securities issuance comes as regional banks continue to experience above system book growth. In an increasingly competitive lending market, the issuer believes it is well positioned as it prepares for the end of the Reserve Bank of Australia’s term-funding facility.
BPCE’s latest Kangaroo deal combined senior-preferred and senior-nonpreferred tranches for the first time in the Australian market since 2018. The borrower says its consistent issuance in Australian dollars is bringing greater investor engagement with each transaction.
On 15 April, NRW.BANK (AA/Aa1/AAA) launched a new 10-year, Kangaroo, A$80 million (US$61.7 million) minimum, social-bond transaction. Indicative price guidance for the deal is 35 basis points area over semi-quarterly swap, equivalent to 33.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead manager Nomura.
On 15 April, Pepper Group revealed plans for a A$750 million (US$579.1 million) capped, nonconforming, residential mortgage-backed securities (RMBS) transaction, PRS29. Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank and Westpac Institutional Bank have been mandated to engage investors. The deal may launch in the week beginning 26 April.
NSW Electricity Networks Finance, the financing entity of TransGrid (Baa2), launched a new eight-year, domestic, senior-secured, benchmark transaction on 15 April. Indicative price guidance for the deal, which is expected to price on the day of launch, is 130 basis points area over semi-quarterly swap. ANZ and MUFG Securities are leading.
On 15 April, Victoria Power Networks (VPN) (A- by S&P) launched a new multi-tranche, Australian dollar denominated, benchmark transaction. Indicative price guidance for the five-year fixed- and floating-rate note tranches is 85 basis points area over swap benchmarks, while the seven-year tranche has a price guidance of 100 basis points area over semi-quarterly swap. Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank are leading.
Late in the day on 14 April, KfW Bankengruppe (AAA/Aaa) launched an indicative A$150 million (US$115.9 million) tap of its February 2025 Kangaroo bond. The forthcoming deal is being marketed at 15 basis points area over semi-quarterly swap, equal to 21.5 basis points area over Australian Commonwealth government bond. Pricing is expected on 15 April and Nomura is leading.