News
On 3 March, China Construction Bank Sydney Branch (CCB Sydney) (A/A1) 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 63 basis points area over three-month bank bills.
Afterpay printed a blockbuster convertible bond on 26 February with a zero coupon and 45 per cent discount to the conversion price. Afterpay’s leads say issuance of convertibles by Australian companies has been in a relative purple patch and the latest deal should further stimulate interest – though they do not expect a convertible-bond deluge.
The Reserve Bank of Australia kept all its policy measures on hold at its March monetary policy decision, despite markets turmoil over the preceding weeks. The reserve bank has taken the opportunity to act flexibly within its mandate but does not appear to be excessively concerned about the market activity – which has centred on a significant bond sell-off.
On 2 March, China Construction Bank Sydney Branch (CCB Sydney) (A/A1) began taking indications of interest for a potential three-year, Australian dollar denominated, senior-unsecured, floating-rate note, benchmark transaction. Initial price thoughts for the deal is 65 basis points area over three-month bank bills.
On 2 March, Aurizon Finance, the financing entity of Aurizon Operations (BBB+/Baa1), launched a new seven-year, Australian dollar denominated transaction. Indicative price guidance for the deal, which is expected to price on the day of launch, is 190 basis points area over semi-quarterly swap. MUFG Securities, National Australia Bank and SMBC Nikko are leading.
On 1 March, Humm Group revealed plans to engage investors regarding an auto and equipment asset-backed securities (ABS) deal from its flexicommercial programme. National Australia Bank and Westpac Institutional Bank are leading.
On 1 March, Aurizon Finance, the financing entity of Aurizon Operations (BBB+/Baa1), began taking indications of interest for a potential Australian dollar denominated, seven-year transaction. The deal is being marketed at 190 basis points area over semi-quarterly swap. MUFG Securities, National Australia Bank, SMBC Nikko are leading.
Australian deal flow continued strongly in the last week of February despite rates market turbulence. A fistful of financial institutions executed transactions in various formats, with other highlights including prints from Charter Hall LWR and Western Australian Treasury Corporation.
On 26 February, Commonwealth Bank of Australia (CBA) completed the bookbuild for its additional tier-one (AT1) capital deal, PERLS XIII. The margin has been set at 275 basis points area over three-month bank bills, the tight end of the indicative price guidance, and upsized the volume to A$1 billion (US$776.9 million) from A$750 million.
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