News
On 12 May, World Bank (AAA/Aaa) released a book update on its January 2024 Kauri increase after launching a day earlier. The minimum volume has been increased to NZ$250 million (US$151.9 million) from NZ$150 million, as pricing remains unchanged at 41 basis points area over mid-swap. The book is in excess of NZ$270 million, with the issuer open to further upsize. ANZ and BNZ are leading.
QBE Insurance has become the first offshore-domiciled issuer to execute a capital transaction in the US 144A market since the escalation of the COVID-19 crisis, with a deal that leads say has piqued the interest of bank and insurance borrowers globally.
Northern Territory Treasury Corporation (NTTC) (Aa3) launched a minimum A$100 million (US$65.5 million), syndicated increase to its existing May 2030 line on 11 May. Indicative price guidance for the forthcoming deal is 87-90 basis points area over futures contract, equivalent to 86.25-89.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead manager UBS.
On 11 May, Macquarie Bank launched an indicative A$400 million (US$257.8 million), 8.5-year non-call 5.5-year, additional tier-one (AT1) deal, marketed at 470-490 basis points over three-month bank bills. The final margin is expected to be announced on 15 May following the completion of a bookbuild. Macquarie Bank is arranger for the deal and joint lead manager with ANZ, Citi, Commonwealth Bank of Australia, Evans and Partners, Morgans, National Australia Bank, Ord Minnett and Westpac Institutional Bank.
On 11 May, Members Banking Group (BBB+/Baa1), trading as RACQ Bank, launched a new indicative A$30 million (US$19.6 million), one-year transaction. The forthcoming deal, which is expected to price on the day of launch, is being marketed at 85 basis points area over three-month bank bills. ANZ is leading.
The following interview is with an Australian-based service provider to the debt capital markets. It was conducted on 1 May 2020.
On 11 May, World Bank (AAA/Aaa) launched a minimum NZ$150 million (US$92.1 million) increase to its January 2024 Kauri bond. The forthcoming deal is being marketed at 41 basis points over mid-swap, with pricing expected on the day after launch. ANZ and BNZ are leading.
On 11 May, La Trobe Financial launched its residential mortgage-backed securities (RMBS) deal, La Trobe Financial Capital Markets Trust 2020-1. Indicative total volume for the forthcoming deal, which is expected to price on the day after launch, is A$1.25 billion (US$817.1 million). Macquarie Bank is arranger and joint lead manager alongside Citi, Commonwealth Bank of Australia, HSBC, National Australia Bank and Natixis.
Including yen-dominated notes in its latest residential mortgage-backed securities (RMBS) deal is the culmination of many years work with Japanese investors, Liberty Financial says. It expects issuing in yen will form a component of its ongoing funding strategy.
Deal activity in the Australian market picked up in the first full week of May. Bank of Queensland printed a A$750 million (US$489.4 million), five-year, conditional pass-through covered bond, while Liberty Financial priced a A$500 million equivalent, dual-currency, residential mortgage-backed securities deal.