News
On 3 June, Northern Territory Treasury Corporation (NTTC) (Aa3) launched a minimum A$50 million (US$34.8 million) increase to its April 2033 line. Indicative price guidance for the forthcoming deal is 132 basis points area over 10-year futures contract, equivalent to 117.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to sole lead manager UBS.
The following interview is with an Australia-based securitisation banker. It was conducted on 28 May 2020.
On 3 June, Columbus Capital launched its residential mortgage-backed securities (RMBS) deal, Columbus Capital Triton 2020-2. Total capped volume for the forthcoming deal is A$600 million (US$414.7 million), with pricing expected on or before 5 June. National Australia Bank is arranger and joint lead manager alongside Natixis, Standard Chartered and Westpac Institutional Bank.
On 3 June, Canadian Imperial Bank of Commerce Toronto Branch (CIBC Toronto) (A+/Aa2/AA) launched a new three-year, Kangaroo, senior-unsecured, benchmark transaction. The forthcoming deal is offered in either or both fixed and floating-rate note formats, with indicative price guidance of 140 basis points area over swap benchmarks.
The following interview is with a New Zealand-based banker in sustainable finance. It was conducted on 27 May 2020.
On 2 June, Canadian Imperial Bank of Commerce Toronto Branch (CIBC Toronto) (A+/Aa2/AA) began taking indications of interest for a new three-year, Australian dollar denominated, senior-unsecured, benchmark transaction. The potential deal, offered in either or both fixed and floating-rate note formats, is being marketed at 140 basis points area over swap benchmarks.
On 2 June, Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC Sydney) (A/A1/A) launched a new Australian dollar denominated, senior-unsecured, multi-tranche transaction. The three-year, floating-rate note (FRN) tranche is being marketed at 100 basis points area over three-month bank bills, while indicative price guidance for the five-year fixed and FRN tranches is 120 basis points area over swap benchmarks.
Kommunalbanken Norway (KBN) (AAA/Aaa) launched a new, five-year Kauri transaction on 2 June. The minimum NZ$100 million (US$63 million) deal is being marketed at 52 basis points area over mid swap, equal to 50.5 basis points area over New Zealand government bond. Pricing is expected on the day after launch, say joint lead managers ANZ and TD Securities.
The Australian dollar market hit a sweet spot for global financial institution (FI) borrowers in the second half of May despite the ongoing absence of the biggest local issuers. Intermediaries say the supply gap has caused a technical pricing squeeze that attracts issuers, while offshore FI pricing remains attractive to real-money investors relative to local names.