News
On 23 March, Liberty Financial mandated BofA Securities, Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank and Westpac Institutional Bank to engage investors regarding a potential residential mortgage-backed securities (RMBS) deal. The transaction may launch in the week beginning 29 March.
On 23 March, RedZed launched its residential mortgage-backed securities (RMBS) deal, RedZed Trust Series 2021-1. Total capped volume for the transaction is A$550 million (US$425 million) and is expected to price on 25 March. National Australia Bank is arranger and joint lead manager alongside Commonwealth Bank of Australia.
On 23 March, NRW.Bank (AA/Aa1/AAA) began taking indications of interest for its inaugural, five-year, Kangaroo, social-bond transaction. The deal is being marketed at 33-35 basis points area over semi-quarterly swap, equivalent to 40.5-42.5 basis points area over Australian Commonwealth government bond. Deutsche Bank, Nomura and RBC Capital Markets are leading.
Toyota Finance Australia (Toyota Australia) (A+/A1) launched a new three-year, Australian dollar denominated, benchmark transaction on 23 March. Offered in either or both fixed- and floating-rate note formats, indicative price guidance for the deal is 58 basis points area over swap benchmarks. Pricing is expected on the day of launch, according to lead managers ANZ and Commonwealth Bank of Australia.
On 23 March, WestConnex Finance Company launched a new 10-year, Australian dollar denominated, senior-secured transaction. Indicative price guidance for the deal is 155 basis points area over semi-quarterly swap and is anticipated to price on the day of launch.
Changes to the EU’s securitisation regulation proposed late in 2020 have been a thorn in the side for Australia’s securitisation industry in the opening months of the year. The amendments put a prohibition of investment from EU-based entities on the cards. However, with a date approaching for the proposals’ reading in the EU parliament, industry figures are confident the issues will be resolved.
After announcing the mandate earlier in the day, Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa2) launched a new January 2032, syndicated, benchmark transaction on 22 March. Indicative price guidance for the deal is 41-45 basis points area over 10-year futures contract, equivalent to 38.75-42.75 basis points area over Australian Commonwealth government bond.
On 22 March, Nissan Financial Services Australia (Nissan Australia) (BBB- by S&P) mandated ANZ and Mizuho Securities to arrange a series of investor calls beginning 24 March regarding a potential Australian dollar denominated, 3-5 year, benchmark transaction.
On 22 March, Centuria Funds Management, the trustee of Centuria Capital No. 2 Fund, launched a A$100 million (US$77.1 million), five-year, ASX-listed, secured transaction. Indicative price guidance for the deal is 425-450 basis points area over three-month bank bills and is expected to price on 29 March following a bookbuild. Morgans, National Australia Bank, Shaw and Partners and Westpac Institutional Bank are leading.
Kommunalbanken Norway (KBN) (AAA/Aaa) launched a A$250 million (US$193.1 million) minimum increase to its June 2026 Kangaroo bond on 22 March. Indicative price guidance for the deal is 26 basis points area over semi-quarterly swap, equivalent to 39 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers Standard Chartered and TD Securities.
On 22 March, Toyota Finance Australia (Toyota Australia) (A+/A1) began taking indications of interest for its new Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate note formats at three-year tenor and a five-year fixed-rate tranche. Initial price guidance is 58 and 75 basis points area over swap benchmarks. ANZ and Commonwealth Bank of Australia are leading.