News
On 29 September, Thinktank Group began taking indications of interest for its commercial mortgage-backed securities (CMBS) transaction, Series 2020-1. Total capped volume for the deal is A$600 million (US$425 million). Commonwealth Bank of Australia is arranger and joint lead manager alongside Deutsche Bank and Westpac Institutional Bank.
On 29 September, Australian Finance Group (AFG) began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, 2020-1NC Trust. Indicative total volume for the transaction is A$350 million (US$247.8 million) and is expected to launch in the week beginning 5 October. National Australia Bank is arranger and joint lead manager alongside Commonwealth Bank of Australia.
On 29 September, DBS Group Holdings (Aa2/AA-) began taking indications of interest for a potential 10.5-year non-call 5.5-year (10.5NC5.5), tier-two, Kangaroo transaction. The deal is being marketed at 195 basis points area over swap benchmarks and an investor call will take place on the same day.
On 28 September, Vector (BBB/Baa1) revealed plans for a new, six-year, New Zealand dollar denominated wholesale deal. ANZ and BNZ have been appointed joint lead managers.
Deal activity in the Australian market was bustling in the week ending 25 September, with Australian Office of Financial Management printing another record-size syndicated transaction, an offshore financial institution executing a social-bond Kangaroo and a rare corporate capital deal from AusNet Services Holdings.
On 25 September, Zip Co mandated National Australia Bank to engage investors regarding a potential Australian dollar denominated asset-backed securities (ABS) transaction, Zip Master Trust Series 2020-1. On the same day, Moody's Investors Service assigned provisional ratings to the A$300 million (US$211.9 million) deal.
Shinhan Bank’s Kangaroo COVID-19-alleviation social bond demonstrates the possibilities for issuers outside the government sector to issue in the format in Australian dollars, issuer and leads say. Deal sources add their view that demand was bolstered by the social overlay.
On 25 September, Oceania Healthcare (NR), a New Zealand aged-care provider, revealed plans for a seven-year, NZ$75-125 million (US$49.1-81.9 million), senior-secured transaction. The offer is expected to open in the week commencing 5 October. Westpac Banking Corporation New Zealand Branch is arranger, as well as joint lead manager with ANZ, Craigs Investment Partners and Jarden Securities.
