News
On 30 January, BNG Bank (AAA/Aaa/AAA) launched a A$20 million (US$13.5 million) tap of its April 2029 Kangaroo bond, via TD Securities. The forthcoming deal is being marketed at 51 basis points area over semi-quarterly swap and 50.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
Dexus Finance (Dexus) printed the largest Australian dollar true corporate deal at 12-year tenor on 23 January. Deal sources say a cornerstone investor enabled the issuer to launch confident of securing competitive pricing and liquidity at the extended duration.
On 30 January, Housing New Zealand Limited, a subsidiary of Kāinga Ora – Homes and Communities (Kāinga Ora) updated the market on its plans for a new 2030 line and a tap of its 2025 line under its wellbeing bonds programme. Issuance in the week of 27 January is no longer being considered, but the issuer will continue to monitor the market in coming weeks.
Westpac Banking Corporation (Westpac) capped an active month of funding with US dollar tier-two and Australian dollar residential mortgage-backed securities (RMBS) deals on consecutive days. The issuer tells KangaNews it brought forward some funding to take advantage of strong conditions and is now well set for the near term.
On 28 January, Liberty Financial (Liberty) launched its auto asset-backed securities (ABS) deal, Liberty Series 2020-1 Auto. The forthcoming deal, which is expected to price 31 January, has total indicative volume of A$250 million (US$168.8 million), with the potential to upsize to A$300 million. National Australia Bank is arranger as well as joint lead manager alongside Bank of America Securities.
In the third full week of January, the Australian dollar corporate market was set alight by Dexus Finance's A$500 million (US$342.3 million) 12-year deal. Meanwhile, securitisation deal flow for 2020 began with transactions from Pepper Group and Westpac Banking Corporation.
