News
On 1 April, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) launched an Australian dollar denominated, syndicated transaction. The offer is a new October 2023, benchmark, floating-rate note and an increase to its February 2024, fixed-rate maturity. Indicative price guidance for the forthcoming deal is, respectively, 36-40 basis points area over three-month bank bills and 49-53 basis points area over Australian Commonwealth government bond.
On 1 April, Canadian Imperial Bank of Commerce Sydney Branch (CIBC Sydney) revealed plans for a three-year, domestic, covered bond deal, to be led by CIBC Capital Markets, HSBC, National Australia Bank and Westpac Institutional Bank. Launch is expected in the near future. The notes are expected to be rated Aaa/AAA.
The following interview is with an Australian-based debt capital markets lawyer. It was conducted on 20 March 2020.
On 1 April, South Australian Government Financing Authority (SAFA) revealed its intention to execute an “open tap” of any or all of its bond lines maturing in 2022, 2024, 2026, 2028, 2030 and 2032 for an aggregate of A$1.5 billion (US$922.5 million). The taps may be executed in one or multiple transactions.
Primary deals are now possible in the Australian securitisation market as a result of government support. Attention is turning to what effect the COVID-19 fallout might have on new and existing residential mortgage-backed securities (RMBS) pools.
On 1 April, New Zealand Debt Management (NZDM) increased its New Zealand Government Bond (NZGB) programme to NZ$25 billion (US$14.9 billion) for the 2019/20 financial year, an increase of NZ$12 billion from the update given on 17 March. The revised funding requirement is due to the additional fiscal impacts of COVID-19.
The Australian Office of Financial Management (AOFM) has revealed further details for securitisation issuers seeking to access its structured finance support fund (SFSF). The 31 March announcement includes guidelines on how to engage the AOFM for expressions of interest.
On 31 March, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) revealed plans for a new Australian dollar denominated, syndicated, benchmark transaction, proposed in either or both fixed and floating-rate note (FRN) formats. The potential fixed-rate offer would be an increase of its February 2024 maturity while the FRN would be a new October 2023 line. The issuer is inviting investors to provide views on pricing and indicative demand.
The following interview is with an Australian-based debt capital markets originator. It was conducted on 23 March 2020.
The swift entry of the Australian Office of Financial Management (AOFM) into the securitisation market added confidence to Firstmac’s return to new issuance and facilitated an upsized transaction. The issuer says it also retained third-party investor engagement from before the COVID-19 related shutdown of new issuance in Australia, though only a smaller deal would have been possible without government support.
The following interview is with a funding executive at a European issuer in the supranational, sovereign and agency sector. It was conducted on 24 March 2020.