News
On 8 December, University of Wollongong (UOW) (AA by S&P) launched an indicative A$200 million (US$148.4 million), eight-year transaction. The forthcoming deal, which is expected to price on the day of launch, is being marketed at 110-115 basis points area over semi-quarterly swap. National Australia Bank is leading.
On 7 December, S&P Global Ratings downgraded the states of Victoria, to AA from AAA, and New South Wales, to AA+ from AAA. S&P notes Victoria’s unusual two-notch downgrade is mainly due to the fallout from the state’s second wave of COVID-19 infections, which resulted in a substantial and prolonged lockdown.
Kiwibank has become the first New Zealand bank to test the waters for subordinated debt issuance since the Reserve Bank of New Zealand (RBNZ) revealed its new bank-capital requirements a year ago. The borrower says the impact of COVID-19 on its capital position and strong asset growth in 2020 propelled it to consider the transaction.
On 7 December, NBN Co (A1/AA) launched a new 10-year, Australian dollar denominated transaction. Indicative price guidance for the forthcoming deal is 125-130 basis points area over semi-quarterly swap. Commonwealth Bank of Australia and Deutsche Bank are leading.
On 7 December, ME Bank launched its residential mortgage-backed securities (RMBS) deal, SMHL Securitisation Trust 2020-1. Total indicative volume for the deal is A$500 million (US$371.7 million) and is expected to price by 10 December. ANZ is arranger and joint lead manager alongside Commonwealth Bank of Australia, MUFG Securities and National Australia Bank.
On 7 December, Ryman Healthcare launched a NZ$100-150 million (US$70.4-105.6 million), six-year, senior-secured transaction. Indicative price guidance for the deal, which is expected to price on 10 December, is 200-220 basis points area over mid-swap. ANZ, Forsyth Barr, Hobson Wealth and Westpac Banking Corporation New Zealand Branch are leading.
Australasian markets saw an abundance of issuance in the first week of December. Highlights in Australia include Ampol's subordinated transaction and Macquarie Bank's domestic senior-unsecured deal, while Kiwibank's tier-two print in New Zealand is the first bank capital deal in the local market since new bank capital requirements were finalised last year.
Following a mandate announcement earlier in the day, Resimac launched its residential mortgage-backed securities (RMBS) deal, Premier Series 2020-3, on 4 December. Total indicative volume for the transaction is A$1 billion (US$743.6 million) equivalent and is expected to price on the day of launch.