News
On 25 August, Resimac began taking indications of interest for its potential residential mortgage-backed securities (RMBS) deal, Versailles 2020-1. Indicative total volume for the transaction is NZ$250 million (US$163.3 million) and is expected to launch in the week beginning 31 August. BNZ and Westpac New Zealand are leading.
After launching its new five-year transaction the day before, Transpower New Zealand (AA- by S&P) announced on 25 August it is increasing the amount of oversubscriptions it is able to accept to NZ$175 million (US$114.4 million) from NZ$75 million. The volume cap is now NZ$300 million. Pricing is expected on the day of the announcement, according to lead manager Westpac Banking Corporation New Zealand Branch.
On 25 August, Korea Expressway Corporation (AA/Aa2) began taking indications of interest for a potential new three-year Kangaroo transaction, offered in either or both fixed and floating-rate note formats. The deal is being marketed at 80-85 basis points area over swap benchmarks. HSBC, Mizuho Securities and Standard Chartered are leading.
Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) launched its syndication of a new, November 2031 Treasury bond on 25 August, via Citi, Commonwealth Bank of Australia, UBS and Westpac Institutional Bank. The forthcoming deal has indicative price guidance of 8-11 basis points over the implied bid yield for the ten-year futures contract. Pricing is expected on the day after launch.
On 25 August, Liberty Financial mandated Credit Suisse and Westpac Institutional Bank to engage investors for an asset-backed securities (ABS) deal from its small-ticket commercial loans SME programme.
On 25 August, Suncorp Group (A/A2/A+) launched a new Australian dollar denominated, 15.25-year non-call 5.25-year (15.25NC5.25), subordinated, floating-rate note (FRN), benchmark transaction. The forthcoming deal, which is expected to price on the day of launch, is being marketed at 250 basis points area over three-month bank bills. The notes are expected to be rated BBB/A-, according to lead managers Citi, National Australia Bank, UBS and Westpac Institutional Bank.
On 25 August, GMT Bond Issuer (BBB by S&P), a wholly owned subsidiary of Goodman Property Trust, launched a NZ$100-150 million (US$65.3-97.9 million) 10-year transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 200 basis points area over mid-swap. Westpac Banking Corporation New Zealand Branch is leading.
On 24 August, the Australian Office of Financial Management (AOFM) announced it is considering a proposal from a consortium comprising Neu Capital, HHR Capital Partners, AMAL Trustee, Grant Thornton and Clayton Utz, to invest in a multi-seller warehouse vehicle through the structured finance support fund (SFSF).
On 24 August, HSBC Bank Australia (HSBC Australia) mandated ANZ, HSBC and National Australia Bank to arrange a series of investor calls beginning 25 August regarding a potential Australian dollar denominated, capital-relief, residential mortgage-backed securitisation (RMBS) transaction.
On 24 August, Qantas Airways (Baa2) mandated Citi, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank to arrange a series of investor calls beginning 25 August regarding a potential Australian dollar denominated benchmark transaction, offered in either or both seven- and 10-year tenors.
Four Australian issuers executed tier-two deals in the week of 17 August, reviving a subordinated debt market that had lain dormant since the onset of the COVID-19 crisis. Deal sources say demand for Australian tier-two paper is strong at home and abroad.