News
Investors are adjusting to a new normal in the Australian high-grade market as conditions settle after March’s turmoil. Reserve Bank of Australia (RBA) bond purchases slowed to a halt by the mid-way point of the year, but investors say its presence is still bringing stability and creating opportunities.
On 15 July, QPH Finance (BBB by S&P), the financing entity of Port of Brisbane, mandated ANZ, MUFG Securities and Westpac Institutional Bank to arrange a series of investor calls on 20 July regarding a potential Australian dollar denominated benchmark transaction, offered in either or both seven- and 10.5-year tenor.
National Australia Bank (NAB) became the first Australian major bank to enter public debt capital markets since the onset of the COVID-19 crisis on 10 July, with the pricing of a second deal from the issuer’s wholesale-targeted additional tier-one (AT1) programme.
On 13 July, Columbus Capital launched its self-managed superannuation fund (SMSF) residential mortgage-backed securities (RMBS) deal, Triton SMSF Trust 2020 Series 1. Total capped volume for the transaction is A$400 million (US$278 million), with pricing expected on 15 July. National Australia Bank is arranger and joint lead manager alongside Credit Suisse, Natixis, Standard Chartered and Westpac Institutional Bank.
On 13 July, Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) launched its new November 2025 syndicated benchmark line. The forthcoming deal is being marketed at 17-20 basis points area over three-year futures contract. Pricing is expected on the day after launch, with BofA Securities, J.P. Morgan, UBS and Westpac Institutional Bank leading.
On 13 July, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched its new NZ$2 billion (US$1.3 billion) minimum, May 2041, syndicated Treasury bond. Indicative price guidance for the forthcoming deal is 29-36 basis points area over the April 2037 New Zealand government bond.
National Australia Bank entered public debt capital markets in the week ending 10 July, the first issue from a major bank since the onset of the COVID-19 crisis, with a A$600 million (US$415.8 million), wholesale, additional tier-one capital transaction. Meanwhile, Australian securitisation deal flow was maintained with a deal from Firstmac.