News
On 15 June, Metro Finance mandated Deutsche Bank and National Australia Bank to engage investors regarding a potential auto and equipment asset-backed securities (ABS) deal.
On 15 June, Bluestone Group (Bluestone) revealed plans for a potential residential mortgage-backed securities (RMBS) transaction from its Sapphire programme. Commonwealth Bank of Australia, Macquarie Bank and National Australia Bank have been mandated to engage investors.
The following interview is with a New Zealand-based service provider to the debt capital markets. It was conducted on 11 May 2020.
On 15 June, Heritage Bank (Baa1/BBB+) mandated ANZ and National Australia Bank for a potential Australian dollar, 10-year non-call five-year, tier-two transaction. The deal is expected to be rated Baa3. An investor update call will be held on the day of the announcement.
New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched its new May 2024 nominal bond on 15 June, with expected volume of at least NZ$2 billion (US$1.29 billion) and indicative price guidance of 9-12 basis points over the April 2023 New Zealand government bond. Pricing is expected on the day after launch. ANZ, Deutsche Bank, J.P. Morgan and Westpac Banking Corporation New Zealand Branch are leading.
The second week of June saw South Australian Government Financing Authority print a A$1.26 billion (US$862 million) deal linked to the Australian overnight index average. Meanwhile, Pepper Group executed its A$700 million PRS 26 residential mortgage-backed securities trade.
South Australian Government Financing Authority (SAFA) has continued in its quest to mould the Australian overnight index average (AONIA)-linked issuance market, introducing longer tenor and larger volume. The market environment has changed markedly in the last few months, including for AONIA, but the issuer says engagement continues to grow.
On 12 June, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$100 million (US$68.5 million) increase to its April 2035 Kangaroo social bond. Indicative price guidance for the forthcoming deal is 51 basis points area over semi-quarterly swap, equivalent to 34.75 basis points area over Australian Commonwealth government bond.
The following interview is with an Australian-based bank treasury executive. It was conducted on 5 June 2020.