News
New South Wales Treasury Corporation (TCorp) entered the domestic market for a new syndicated 2032 deal just a day after S&P Global Ratings downgraded its rating. The issuer says the downgrade had a negligible effect on pricing, with the Reserve Bank of Australia (RBA)’s presence in the semi-government market acting as a counterweight.
On 10 December, Metro Finance launched its auto and equipment asset-backed securities (ABS) transaction, Metro 2020-2. Indicative total volume for the deal is A$300 million (US$223.2 million), with the ability to increase to A$400 million, and is expected to price on the day after launch. National Australia Bank is arranger and lead manager alongside Deutsche Bank.
The challenging path back to budget balance rather than the first order impact of the second lockdown was behind S&P Global Ratings’ two-notch downgrade of the state of Victoria. The rating agency emphasised the long term in a 9 December webinar on its recent downgrades of Victoria and New South Wales (NSW).
On 9 December, Metro Finance began taking indications of interest for its auto and equipment asset-backed securities (ABS) transaction, Metro 2020-2. Indicative total volume for the deal is A$300 million (US$222.4 million), with the ability to increase to A$400 million. National Australia Bank is arranger and lead manager alongside Deutsche Bank.
On 8 December, Pepper Group launched its auto and equipment asset-backed securities (ABS) deal, Pepper Sparkz 3. Capped volume for the transaction is A$615.9 million (US$456.8 million) and is expected to price 11 December. Westpac Institutional Bank is arranger and joint lead manager alongside BofA Securities, MUFG Securities, National Australia Bank, RBC Capital Markets and Societe Generale.
On 8 December, New South Wales Treasury Corporation (TCorp) (AA+/Aaa) launched a new February 2032, syndicated, benchmark transaction. Indicative price guidance for the forthcoming deal is 42-45 basis points area over 10-year futures contract, equivalent to 29.75-32.75 basis points area over Australian Commonwealth government bond.