News
On 18 February, Members Banking Group (BBB+/Baa1), trading as RACQ Bank, launched an indicative A$50 million (US$33.6 million), three-year, floating-rate note (FRN) transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 93 basis points area over three-month bank bills. ANZ and National Australia Bank are leading.
Liberty Financial (Liberty) (BBB- by S&P) launched a four-year, Australian dollar denominated, benchmark, floating-rate note (FRN) transaction on 17 February. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 240-245 basis points area over three-month bank bills. Deutsche Bank, National Australia Bank and Westpac Institutional Bank are leading.
On 17 February, Commonwealth Bank of Australia (CommBank) announced plans to engage investors regarding a self-led refinancing of its Class A1 note from its Medallion Trust Series 2015-1 residential mortgage-backed securities (RMBS) deal. The transaction is to be benchmarked against one-month bank bills.
Western Australian Treasury Corporation (WATC)’s latest transaction shows that banks’ demand for semi-government floating-rate note (FRN) issuance is still evident as they work to fill their high-quality liquid asset (HQLA) requirements.
On 17 February, Industrial and Commercial Bank of China Sydney Branch (ICBC Sydney) (A/A1/A) began taking indications of interest for a new three-year, Australian dollar denominated, floating-rate note (FRN) transaction. Initial price guidance for the potential deal is 85 basis points area over three-month bank bills. ANZ, ICBC, National Australia Bank and Westpac Institutional Bank are leading.
National Australia Bank (NAB) (AA-/Aa3/AA-) launched an indicative A$750 million (US$504 million) additional tier-one (AT1) capital transaction on 17 February. The indicative margin for the deal is 295-315 basis points area over three-month bank bills. The final margin will be set following a bookbuild, on 25 February. The offer is expected to open 25 February and close on 17 March.
On 17 February, following the completion of a bookbuild for its additional tier-one (AT1) capital transaction, Macquarie Bank revealed a volume of A$425 million (US$285.6 million) and a margin of 290 basis points over three-month bank bills. The offer is expected to open on 19 February and close on 18 March. The notes have a first optional exchange date on 21 December 2025 and a mandatory exchange date on 21 December 2028.
Treasury Corporation of Victoria (TCV) (AAA/Aaa) launched a new November 2030, Australian dollar denominated, syndicated, benchmark transaction on 17 February. Indicative price guidance for the forthcoming deal is 49-52 basis points area over 10-year futures contract, equivalent to 48.9-51.9 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to joint lead managers ANZ, Citi, Deutsche Bank and UBS.
On 17 February, Members Banking Group (BBB+/Baa1), trading as RACQ Bank, began taking indications of interest for a new three-year, Australian dollar denominated transaction. Initial price guidance for the potential deal is 93 basis points area over three-month bank bills, according to ANZ and National Australia Bank.
On 17 February, Liberty Financial (Liberty) (BBB- by S&P) mandated Deutsche Bank, National Australia Bank and Westpac Institutional Bank for a potential four-year, Australian dollar denominated, benchmark transaction.
Trans-Tasman market activity bounced back in the second full week of February. In Australia there was a A$300 million (US$201.6 million) 12-year deal from GPT RE and benchmark supply in the semi-government and financial institution sectors. Meanwhile, World Bank returned to the Kauri market with a NZ$600 million (US$386 million) five-year transaction.