News
Bank of China Australia (BoC Australia) (A3/A-) launched a new, three-year domestic floating-rate note (FRN) deal on 29 October. The forthcoming transaction has indicative price guidance of 83-85 basis points over three-month bank bills and is expected to price on the day of launch. ANZ, BoC, Commonwealth Bank of Australia and Westpac Institutional Bank are joint lead managers.
On 22 October, KangaNews hosted the latest in the KangaNews Debt Capital Markets Summit 2020 webinar series. The session had a rates-market flavour, including a discussion between some of Australia’s leading market participants about how massively increased sovereign issuance, central-bank intervention and a raft of new dynamics will shape their sector.
On 28 October, Pepper Group mandated Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank and Westpac Institutional Bank to engage investors for a nonconforming residential mortgage-backed securities (RMBS) deal, PRS 28.
The launch by the Australian Securities Exchange (ASX) of a new five-year Australian Commonwealth government bond (ACGB) futures contract is well timed to meet the needs of an evolving market and should therefore attract liquidity from listing, market participants believe.
Asian Development Bank printed the year’s first mid-curve benchmark new issue from a supranational, sovereign and agency (SSA) borrower in Australian dollars, on 27 October. The issuer says expectations of monetary policy easing have returned pricing to attractive levels.
On 28 October, Bendigo and Adelaide Bank (BEN) launched an additional tier-one (AT1) capital deal seeking to raise approximately A$350 million (US$249.3 million). The proceeds from the transaction will be available for the redemption of BEN’s convertible preference shares.
On 28 October, Allied Credit launched its debut asset-backed securities (ABS) deal, Allied Credit ABS Trust 2020-1. The capped A$200 million (US$142.5 million) deal is expected to price on the day after launch. National Australia Bank is arranger, and joint lead manager with Macquarie Bank.
The latest in the KangaNews Debt Capital Markets Summit 2020 webinar series included an outlook on the Australian economy and bond market approaching the end of a tumultuous year. Discussion focused on the scale of fiscal support still required, how central-bank stimulus will be deployed and the outlook for key indicators including the housing market.