News
ME Bank revealed plans for a potential Australian dollar denominated, capital-relief, residential mortgage-backed securities (RMBS) deal, SMHL 2020-1, on 30 November. ANZ has been mandated as arranger and lead manager alongside Commonwealth Bank of Australia, MUFG Securities and National Australia Bank.
World Bank capped an active year in the Kauri market with a record-breaking deal on 26 November. The issuer pursued a dual-tranche strategy designed to bring in bids from multiple investor bases, while a recent backup in New Zealand dollar yield produced a further demand bump.
On 30 November, AMP Life (A-/A3), part of the Resolution Life Group, began taking indications of interest for its new Australian dollar denominated, 15-year non-call five-year (15NC5), tier-two, benchmark, floating-rate note (FRN) transaction. The deal is being marketed at 350 basis points area over three-month bank bills and is expected to launch this week.
Western Australian Treasury Corporation (WATC) (AA+/Aa1) launched a new Australian dollar denominated, March 2026, syndicated, benchmark, floating-rate note (FRN) transaction on 30 November. The deal, which is expected to price on the day of launch, is being marketed at 10-13 basis points area over three-month bank bills.
On 30 November, Ampol (Baa1) launched a new Australian dollar denominated, 60-year non-call 5.25-year (60NC5.25), subordinated, wholesale, benchmark, floating-rate note transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 380 basis points area over three-month bank bills.
On 30 November, Kiwibank launched an indicative NZ$275 million (US$193.2 million) 10-year tier-two deal with an interest rate reset date in December 2025. The transaction is the first bank capital deal in the New Zealand dollar market since the Reserve Bank of New Zealand finalised new bank capital requirements in December 2019.
A number of significant transactions occurred in Australasian markets in the final full week of November. Bendigo and Adelaide Bank printed the first benchmark-sized, senior-unsecured deal from an Australian bank since February, NBN Co executed its inaugural debt capital markets transaction and World Bank issued a bumper Kauri.
Asset growth and a conservative funding strategy led Bendigo and Adelaide Bank (BEN) to print the first senior-unsecured benchmark deal by an Australian bank since the COVID-19 pandemic began, the issuer tells KangaNews. The A$650 million (US$478.4 million) five-year transaction priced on 25 November and is a rarity in a market that has been denuded of senior bank issuance.
On 27 November, Western Australian Treasury Corporation (WATC) (AA+/Aa1) mandated Commonwealth Bank of Australia, UBS and Westpac Institutional Bank as lead managers for a new March 2026, syndicated, floating-rate note (FRN) transaction.
On 27 November, GAIF Bond Issuer (BBB+/Baa1), the financing entity of Goodman Australia Industrial Partnership (GAIP), mandated ANZ, HSBC and National Australia Bank to arrange a series of investor calls beginning 30 November regarding a potential seven-year or longer, Australian dollar denominated, benchmark transaction.
On 26 November, Pepper Group revealed plans to meet investors ahead of a potential auto and equipment asset-backed securities (ABS) deal, Pepper SPARKZ Trust 3. BofA Securities, MUFG Securities, National Australia Bank, RBC Capital Markets, Societe Generale and Westpac Institutional Bank will arrange investor meetings.