News
On 9 October, Treasury Corporation of Victoria (TCV) (AAA/Aaa) announced a potential new March 2024, Australian dollar denominated, syndicated, floating-rate note (FRN), benchmark transaction. ANZ, BofA Securities and Westpac Institutional Bank are leading.
On 9 October, Argosy Property revealed plans for a NZ$125-150 million (US$82.4-98.4 million), seven-year, senior-secured, green-bond transaction, offered to institutional and New Zealand retail investors. The deal is expected to launch in the week beginning 12 October.
Australia’s securitisation market has maintained deal volume at a level in line with outcomes from recent years despite massive upheaval to the supply and demand picture in 2020. In particular, bank issuers have been all-but absent this year but a particularly active September for new issuance kept annual volume robust.
Western Australian Treasury Corporation (WATC) revealed a A$4.3 billion (US$3.1 billion) borrowing programme for the 2020/21 financial year on 9 October, following the release of the Western Australian state budget the previous day. It is at the upper end of the A$2.6-4.5 billion estimate provided at the state’s last budget update on 29 May.
The Australian Office of Financial Management (AOFM) has intervened in the Australian securitisation market since March through its structured finance support fund (SFSF), which facilitated significant securitisation deal flow in the mid-part of 2020. The AOFM is further enhancing its market support with the introduction of its forbearance special-purpose vehicle (FSPV).
On 8 October, Lendlease Group (Baa3/BBB-), via its financing subsidiary Lendlease Finance, revealed plans for a potential seven-year, Australian dollar denominated, benchmark, green-bond transaction.
Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, launched a seven-year, Australian dollar denominated, senior-secured transaction on 8 October. Indicative price guidance for the forthcoming deal is 180-185 basis points area over swap benchmarks and is expected to price on the day of launch.
On 7 October, Thinktank Group launched its commercial mortgage-backed securities (CMBS) transaction, Series 2020-1. Total capped volume for the deal is A$600 million (US$427 million) and is expected to price on 9 October. Commonwealth Bank of Australia is arranger and joint lead manager alongside Deutsche Bank and Westpac Institutional Bank.