News
On 6 May, Firstmac launched a residential mortgage-backed securities (RMBS) refinancing deal, Firstmac Series 1-2015 Class A-2R. The indicative tranche volume for the forthcoming transaction, which is expected to price on the day after launch, is A$101 million (US$65 million). ANZ and National Australia Bank are leading.
On 6 May, Woolworths Group (BBB/Baa2) announced plans to hold fixed-income investor calls on 11 May. The issuer is considering either or both a five-year deal and a longer-dated Australian dollar denominated deal. ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank have been mandated for the transaction.
The following interview is with an Australian-based corporate treasurer. It was conducted on 1 May 2020.
The following interview is with an Australian-based service provider to the fixed-income market. It was conducted on 30 April 2020.
On 5 May, Bank of Queensland (BBB+/A3/A-) mandated ANZ, National Australia Bank and UBS to arrange an investor call regarding a potential five-year, Australian dollar denominated, conditional pass-through (CPT) covered bond transaction. The notes are expected to be rated Aaa/AAA.
BNG Bank’s benchmark Kangaroo deal priced on 30 April was the first broadly distributed new line established in Australian dollars by a supranational, sovereign and agency (SSA) borrower in 2020. Deal sources say relative value to Australian semi-government borrowers drove demand.
COVID-19 has thrown up challenges even for the most established capital markets borrowers. The crisis is particularly acute for newer financial institutions with shorter track records and smaller asset books. Government support should help, but a protracted downturn could make survival of the fittest a best-case scenario.
The following interview is with an Australian-based fixed-income syndicate banker. It was conducted on 1 May 2020.
Australian market deal flow was again slow, but steady, in the week ending 1 May. BNG Bank executed a A$500 million (US$226.2 million), 3.5-year transaction - the first new benchmark-sized Kangaroo line issued by a sovereign, supranational and agency issuer this year.
The following interview is with an Australian-based fixed-income investor. It was conducted on 28 April 2020.
On 1 May, South Australian Government Financing Authority (SAFA) revealed in its monthly funding intentions update that it is considering a new, three-year Australian Overnight Index Average (AONIA)-linked, floating-rate note (FRN) deal with quarterly coupons.
