News
On 24 June, Metro Finance began taking indications of interest for its automobile and equipment asset-backed securities (ABS) deal, Metro 2020-1. Indicative total volume for the transaction is A$300 million (US$208.2 million) and is expected to launch in the week beginning 29 June. National Australia Bank is arranger and joint lead manager alongside Deutsche Bank.
Despite the impact of COVID-19 on the commercial property market, deal sources say RedZed Lending Solutions’ inaugural commercial mortgage-backed securities (CMBS) transaction was welcomed by investors in an improving environment for securitisation issuance.
The following interview is with an Australian-based debt capital markets originator. It was conducted on 24 June 2020.
On 24 June, WSO Finance, the financing entity of Westlink Motorway (A3/A-), launched a new 10-year, minimum A$100 million (US$69.3 million), transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 215-225 basis points area over semi-quarterly swap. Commonwealth Bank of Australia and Westpac Institutional Bank are leading.
On 24 June, in its monthly tender schedule update, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) revealed plans to execute a new, May 2041, syndicated, nominal bond transaction in the week beginning 13 July. It also expects to undertake a syndicated tap of its April 2027 line in August.
The following interview is with an Australia-based banker in sustainable finance. It was conducted on 23 June 2020.
Singtel Optus (A-/A2), through its wholly-owned subsidiary Optus Finance, launched a Australian dollar denominated benchmark transaction on 23 June, offered in five- and 10-year tenor. The forthcoming deal is being marketed at, respectively, 140 and 185 basis points area over semi-quarterly swap.
On 23 June, WSO Finance (WSO), the financing entity of Westlink Motorway (A-/A3), mandated Commonwealth Bank of Australia and Westpac Institutional Bank to arrange an investor call on the same day regarding a potential 10-year or longer Australian dollar denominated transaction.
On 23 June, Brisbane Airport (BBB/Baa2) launched a new Australian dollar denominated benchmark transaction, offered in either or both six- and 10.5-year tenor. Indicative price guidance for the six-year tranche is 275-300 basis points area over semi-quarterly swap, while the 10.5-year tranche, which is offered in either or both fixed and floating-rate note format, is 375-400 basis points area over swap benchmarks.