News
On 28 July, Ausgrid Finance (BBB/Baa1) began taking indications of interest for an Australian dollar denominated, benchmark transaction. The potential offer includes either or both a 3.5-year floating-rate note and a 6.5-year fixed-rate line. Initial price thoughts are, respectively, 120 and 150 basis points area over swap benchmarks. MUFG Securities, National Australia Bank and UBS are leading.
On 28 July, Pepper Group mandated Citi, Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank and Westpac Institutional Bank to engage investors regarding a potential Australian dollar denominated, nonconforming, residential mortgage-backed securities (RMBS) transaction.
On 27 July, Macquarie Bank began taking indications of interest for a residential mortgage-backed securities (RMBS) deal - a refinancing of its PUMA series 2015-3 class A-R note. Total indicative volume is A$306.7 million (US$218.3 million).
Resimac issued its second residential mortgage-backed securities (RMBS) deal since mid-March, this time from its Bastille nonconforming programme, on 23 July. The borrower says investor support, particularly from offshore, is promoting solid market conditions.
On 27 July, Australian Office of Financial Management (AOFM) launched its new syndicated June 2051 Treasury bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 98-105 basis points area over ten-year futures contract. ANZ, Commonwealth Bank of Australia, Deutsche Bank, J.P. Morgan and UBS are leading.
On 27 July, Wellington International Airport revealed it is exploring a NZ$75-100 million (US$49.8-66.4 million) six-year, senior-unsecured, domestic deal to be offered to institutional and retail investors. Full details of the deal will be made available in the week beginning 3 August, when it is expected to open. ANZ is arranger for the transaction, and joint lead manager alongside Forsyth Barr.
Port of Brisbane is the latest in a clutch of corporate borrowers to bring a deal initially mandated prior to the COVID-19 crisis. As a defensive credit, deal sources say the transaction – issued out of QPH Finance, met demand sufficient to facilitate substantial price tightening.
Deal activity in the Australian market for the week ending 24 July was highlighted by transactions from Port of Brisbane and UBS Australia Branch. Meanwhile, two primary residential mortgage-backed securities deals were executed.
On 24 July, QIC Finance, as the financing entity for QIC Shopping Centre Fund, issued an early redemption notice to the holders of its 3.75 per cent, A$200 million (US$142.2 million), fixed-rate notes due 24 February 2021. The notes will be redeemed at par on 24 August 2020.
Ausgrid Finance (BBB/Baa1) mandated MUFG Securities, National Australia Bank and UBS to arrange a series of investor calls in the week beginning 27 July regarding a potential Australian dollar denominated benchmark transaction on 24 July. Ausgrid is considering a 6.5-year fixed-rate line and a shorter-dated floating-rate note.
On 24 July, New Zealand Local Government Funding Agency (LGFA) revealed plans for a potential new April 2037 line and an increase to its existing April 2022 bonds. LGFA will hold a global investor conference call on 27 July. BNZ is arranger and lead manager alongside ANZ, Commonwealth Bank and Westpac Banking Corporation New Zealand Branch.