News
On 27 October, BC Securities, a nonbank specialising in nonresident loans, revealed plans for an Australian dollar denominated residential mortgage-backed securities (RMBS) deal, from its Ruby RMBS programme. Credit Suisse, Deutsche Bank and Natixis have been mandated as to engage investors.
On 27 October, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched its new May 2028 nominal bond by syndication, expecting to raise NZ$2-4 billion (US$1.3-2.7 billion). The forthcoming deal has indicative price guidance of 13-17 basis points over the April 2027 New Zealand government bond.
On 26 October, Liberty Financial launched its indicative A$800 million (US$570 million) residential mortgage-backed securities (RMBS) deal, Liberty Series 2020-3. The transaction is expected to price on 28 October. Commonwealth Bank of Australia is arranger, and joint lead manager with BofA Securities, Deutsche Bank, National Australia Bank and Westpac Institutional Bank.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new, minimum A$300 million (US$213.7 million), 5.5-year Kangaroo deal on 26 October. The forthcoming transaction has indicative price guidance of 24 basis points area over semi-quarterly swap and 20.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers Deutsche Bank, Nomura and TD Securities.
On 26 October, Bank of Queensland (BOQ) launched its additional tier-one (AT1) capital transaction, Capital Notes 2. The issuer intends to raise A$200 million (US$142.5 million) with the ability to raise more or less. The notes have an indicative margin of 380-400 basis points area over three-month bank bills, with the final margin to be announced on or before 2 November following a bookbuild.
Lendlease Group printed its debut green bond on 20 October to become the first nonfinancial corporate credit to print labelled green, social and sustainability (GSS) product in Australia this year. The issuer tells KangaNews its financing strategy now aligns with the business’s strong green credentials.
Green-labelled issuance was to the fore in a packed third week of October. New South Wales Treasury Corporation and Lendlease issued green bonds, while flexigroup and Brighte issued green asset-backed securities deals.
New South Wales Treasury Corporation (TCorp)’s November 2030 green-bond deal achieved wider distribution than any of its previous green, social and sustainability (GSS) bond forays, deal sources say. The issuer and leads say the deal benefited from latent demand for labelled product and other tailwinds supporting the semi-government market.
Woori Bank printed its first COVID-19-recovery Kangaroo sustainability bond on 22 October. Deal sources say earlier successful transactions from Korean-based issuers this year persuaded the bank to come to the Australian dollar market.
