News
KangaNews announced the winners of the KangaNews Awards 2019 at the beginning of the first full week of December. In the same week, Australian public market activity was highlighted by National Australia Bank's A$500 million (US$342.1 million) wholesale AT1 transaction. Meanwhile, New Zealand saw Synlait Milk price a NZ$180 million (US$118 million) five-year, subordinated deal.
On December 5, the Reserve Bank of New Zealand (RBNZ) revealed its final determination on new capital requirements for domestic banks. Banks will still have higher capital requirements but the regulator has elected to let them fund part of these with redeemable additional tier-one (AT1) instruments and is also granting a longer implementation period.
National Australia Bank (NAB) (AA-/Aa3/AA-) launched its wholesale, perpetual non-call 10-year, additional tier-one (AT1) capital transaction on 5 December. The forthcoming deal is being marketed at 375 basis points area over semi-quarterly swap, with the notes expected to be rated BBB- by S&P Global Ratings. Pricing is expected on the day of launch.
On 5 December, Uniting Financial Services launched its debut 10-year non-call five-year (10NC5), Australian dollar denominated, subordinated, floating-rate note (FRN), sustainable development goals (SDG) transaction. Indicative price guidance for the forthcoming transaction, which is expected to price on the day of launch, is 325 basis points area over three-month bank bills. ANZ is leading.
The EU’s new regulations regarding investments in securitisation transactions came into effect on 1 January 2019. The securitsation partners at US law firm Mayer Brown look at the impact of the new regime and, in particular, the likely consequences for issuers from Australia.
The low-rate environment is promoting unprecedented demand for higher-yielding financial-institution (FI) product, while at the same time economic and political headwinds are making execution conditions choppy. Global FIs are increasingly leaning on noncore-currency issuance to supplement their funding requirements.