News
On 15 March, Humm Group launched its auto and equipment asset-backed securities (ABS) deal, flexicommercial ABS Trust 2021-1. Indicative volume for the transaction is A$300 million (US$232.4 million), with the potential to upsize, and is expected to price on 17 March. Westpac Institutional Bank is arranger and lead manager alongside National Australia Bank.
On 15 March, RedZed mandated Commonwealth Bank of Australia and National Australia Bank for a potential residential mortgage-backed securities (RMBS) transaction. Investor calls will begin 16 March with the deal expected to launch in the week commencing 22 March.
On 15 March, Pepper Group launched its residential mortgage-backed securities (RMBS) deal, Pepper I-Prime 2021-1. The transaction has a capped volume of A$750 million (US$582.7 million) and is expected to price on 17 March. Commonwealth Bank of Australia is arranger and lead manager alongside National Australia Bank, SMBC Nikko and Westpac Institutional Bank.
Verizon Communications (BBB+/Baa1/A-) launched a new multi-tranche, Kangaroo, benchmark transaction on 15 March. Offered in seven- and 10-year tenors, indicative price guidance for the deal is 115 and 140 basis points area over semi-quarterly swap. The issuer is also considering a 20-year tranche with a price guidance of 175 basis points area over semi-quarterly swap.
The global sustainable-debt market has traditionally taken its lead from Europe but its innovations are increasingly being adopted globally. Susan Barron, global head of green and sustainable capital markets at Barclays in London, and Jake Hartmann, the bank’s Sydney-based director and head of debt capital markets, Australia and New Zealand, share a view on global developments and lessons for Australian borrowers seeking to align with international best practice.
Sustainable-finance development in Australia has tended to focus on the institutional sector. But a vast quantity of assets on bank balance sheets are residential mortgages, which to date have been almost untouched by environmental considerations. Clean Energy Finance Corporation and KangaNews gathered a group of market participants at the cutting edge of green home-loan development to discuss the product’s potential and its funding implications.
Sustainability can no longer be ignored by capital-market practitioners – according to participants at a February roundtable discussion hosted by KangaNews, Commonwealth Bank of Australia and Westpac Institutional Bank. Deal flow is likely to increase as a result, but the consequences are vastly wider and deeper.
On 15 March, Defence Bank revealed plans to engage investors for an inaugural capital-relief residential mortgage-backed securities (RMBS) transaction, Salute Series 2021-1. ANZ is arranger and lead manager.
On 15 March, Stockland Trust Management (A-/A3), the responsible entity for Stockland Trust, revealed plans for a potential seven-year, Australian dollar denominated, benchmark transaction. Commonwealth Bank of Australia and Westpac Institutional Bank have been mandated to arrange an investor call on the same day.
On 15 March, BWP Management, the responsible entity for BWP Trust (A-/A3), mandated SMBC Nikko and Westpac Institutional Bank to arrange an investor call on 16 March regarding a potential seven-year Australian dollar denominated transaction.
On 15 March, Mercury (BBB+ by S&P) launched a NZ$200-250 million (US$143.5-179.4 million), 5.5-year, green-bond transaction. Offered to institutional and New Zealand retail investors, indicative price guidance for the forthcoming deal is 85-100 basis points area over mid-swap.
Australian market deal activity in the second week of March was highlighted by credit deals from Toronto-Dominion Bank, Liberty Financial and Mirvac Group Finance. Meanwhile, Eclipx Group printed the first auto asset-backed securities transaction of the year.