News
At the end of the third quarter of a tumultuous year for global markets, Yuriy Popovych, director, syndicate at TD Securities in Singapore, casts an eye over the global supranational, sovereign and agency (SSA) funding sector and discusses the trends shaping it.
Deal activity in Australasian markets was muted in the week bridging September and October. DBS Group Holdings printed a tier-two Kangaroo and Vector issued a six-year transaction in New Zealand.
On 2 October, Pepper Group mandated Commonwealth Bank of Australia, National Australia Bank, Standard Chartered and Westpac Institutional Bank to engage investors regarding a potential residential mortgage-backed securities (RMBS) deal from its I-Prime programme.
On 1 October, flexigroup mandated Commonwealth Bank of Australia and National Australia Bank to engage investors from 7 October regarding a potential asset-backed securities (ABS) deal from its Flexi programme, which is expected to include green tranches.
On 1 October, Avanti Finance began taking indications of interest (IOI) for its residential mortgage-backed securities (RMBS) deal, Avanti RMBS 2020-1. The transactions has indicative volume of NZ$250 million (US$165.7 million) and may launch in the week beginning 5 October. Westpac New Zealand is sole lead manager.
Debates around price, impact and social benefit in environmental, social and governance (ESG) investing have been quickly developing in recent years, and been further energised by the COVID-19 crisis. Commonwealth Bank of Australia (CBA) facilitated a discussion to get the latest views from issuers and investors.
On 30 September, DBS Group Holdings (Aa2/AA-) launched a 10.5-year non-call 5.5-year, tier-two Kangaroo deal. The forthcoming transaction has indicative price guidance of 195 basis points area over swap benchmarks and is expected to price on the day of launch. The notes are expected to be rated A2/A.
On 30 September, Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, revealed plans for a group investor update on 6 October regarding a potential seven-year, Australian dollar denominated, senior-secured transaction. ANZ, Commonwealth Bank of Australia and National Australia Bank are joint lead managers for the deal, while Bank of China is a passive lead manager.
AusNet Services Holdings pushed ahead with a hybrid-capital deal despite global market volatility rearing in the days preceding launch. Issuer and leads say support was secured from key accounts in advance but the deal also attracted plenty of bids from yield-hungry investors despite the challenging environment.
On 30 September, Vector (BBB by S&P) launched a six-year, indicative NZ$150 million (US$98.9 million), domestic wholesale transaction, with indicative price guidance of 130-145 basis points over mid swap. ANZ and BNZ are joint lead managers for the deal, which is expected to price on the day after launch.