News
The Reserve Bank of Australia (RBA) announced in its September monetary-policy decision further support for Australian authorised deposit-taking institutions (ADIs) through an expansion and extension of the term funding facility (TFF). The measures are likely to increase overall TFF lending to around A$200 billion (US$148.1 billion).
Earlier in the day on 1 September, Housing New Zealand (AA+/Aaa), a subsidiary of Kāinga Ora – Homes and Communities (Kāinga Ora), launched a new NZ$200 million (US$135.2 million) minimum, 15-year, wellbeing-bond. The forthcoming deal is being marketed at 70-75 basis points area over mid-swap and is expected to price on the day after launch. BNZ, Commonwealth Bank and Westpac Banking Corporation New Zealand Branch are leading.
On 1 September, Lendlease Real Estate Investments, the responsible entity of Australian Prime Property Fund Retail (APPF Retail), announced a consent solicitation process for its A$40 million (US$29.6 million) November 2022 and A$200 million May 2024 notes.
After establishing its Australian debt issuance programme in late July, Korea Expressway Corporation (KEC) issued its inaugural Kangaroo transaction on 26 August. The issuer tells KangaNews the deal priced inside its US dollar secondary curve.
On 1 September, Bluestone Group launched its residential mortgage-backed securities (RMBS) deal, Sapphire XXIV 2020-2. Total capped volume for the transaction is A$350 million (US$258.3 million) and is expected to price on 3 September. Macquarie Bank and National Australia Bank are arrangers and joint lead managers alongside Commonwealth Bank of Australia.
On 1 September, South Australian Government Financing Authority (SAFA) revealed in its monthly funding intentions update that it is preparing a potential increase, of up to A$1 billion (US$737.4 million), of its May 2028 line via syndication. ANZ, Deutsche Bank, HSBC and Nomura are leading.
On 1 September, Commonwealth Bank of Australia (CommBank) (AA-/Aa3/A+) launched a new self-led Australian dollar denominated, 10-year non-call five-year (10NC5), subordinated transaction, offered in either or both fixed and floating-rate note formats. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 195 basis points area over swap benchmarks. The notes are expected to be rated BBB+/Baa1/A-.
On 31 August, RedZed Lending Solutions launched its capped A$400 million (US$294.1 million) residential mortgage-backed securities (RMBS) deal, RedZed Trust Series 2020-2. The transaction is expected to price on 4 September. Commonwealth Bank of Australia is arranger, and joint lead manager alongside National Australia Bank.