News
World Bank’s latest Kangaroo deal made up for the borrower’s long absence from the Australian dollar market, setting a transaction volume record for Kangaroo supranational, sovereign and agency (SSA) borrowers. The issuer says the deal was made possible by a favourable readjustment in spread and the cross-currency basis.
Following the announcement of its May 2041 syndicated tap in the week beginning 16 November earlier in the day on 13 November, Australian Office of Financial Management (AOFM) revealed National Australia Bank, TD Securities, UBS and Westpac Institutional Bank will be joint lead mangers for the transaction.
On 13 November, Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) revealed plans for a syndicated tap of its May 2041 line in the week beginning 16 November, with a maximum of A$6 billion (US$4.3 billion) to be issued. Lead managers for the transaction will be announced later in the day.
On 12 November, Export Finance Australia (AAA by S&P) launched a new 10-year, domestic transaction. The forthcoming deal is being marketed at 18 basis points area over 10-year futures contract, equivalent to 18.13 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead manager ANZ.
Westpac Banking Corporation returned to the US dollar market for its latest tier-two transaction and scored a blockbuster book in a dual-tranche deal. The Australian major-bank supply dynamic, a reasonably clean US election result and renewed hopes for an imminent COVID-19 vaccine buoyed the transaction, the issuer says.
On 11 November, Westpac Banking Corporation completed the bookbuild for its perpetual non-call March 2027, additional tier-one capital transaction, Westpac Capital Notes 7. Deal volume is around A$1.4 billion (US$1 billion) with the ability to raise more or less, and the margin has been set at 340 basis points over three-month bank bills, the tight end of the indicative range.
On 12 November, International Finance Corporation (IFC) (AAA/Aaa) launched a new A$300 million minimum, 7.5-year, Kangaroo transaction. Indicative price guidance for the forthcoming deal is 25-27 basis points area over semi-quarterly swap, equivalent to 21-23 basis points area over Australian Commonwealth government bond.
BC Invest became the second Australian nonbank issuer of residential mortgage-backed securities (RMBS) backed primarily by nonresident loans with its 10 November deal. The borrower says a successful deal outcome was built on extensive investor engagement.