News
KangaNews is proud to present the winners of the institutional and deal categories in the KangaNews Awards 2019. After an extensive voting and verification process, KangaNews can confidently say its results reflect a true market view on the outstanding performers of 2019 in the Australian and New Zealand debt markets.
On 4 December, National Australia Bank (NAB) (AA-/Aa3/AA-) began taking indications of interest for a wholesale, perpetual non-call 10-year, additional tier-one (AT1) capital transaction. Initial price guidance for the deal, which is expected to launch in the near future, is 375 basis points area over semi-quarterly swap. The notes are expected to be rated BBB- by S&P Global Ratings.
On 4 December, Uniting Financial Services began taking indications of interest for its debut 10-year non-call five-year (10NC5), Australian-dollar denominated, subordinated, floating-rate note (FRN), sustainable development goals (SDG) transaction. The deal is being marketed at 325 basis points area over three-month bank bills and is expected to launch in the near future, according to lead manager ANZ.
On 4 December, CNH Industrial Capital Australia (CNH Capital) (BBB/Baa3) launched an inaugural, A$100 million minimum, three-year transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 140 basis points area over semi-quarterly swap. ANZ and Citi are leading.
Cleanaway Waste Management priced the tightest deal from an unrated Australian industrial issuer in the USPP market since the financial crisis with its recent transaction, placement agents say. The issuer undertook the deal to term out bank debt it took on following an acquisition in 2018 and it says further expansion is on the horizon.
On 3 December, Firstmac launched its new residential mortgage-backed securities (RMBS) deal, Firstmac Mortgage Funding Trust No.4 Series 4-2019 (Firstmac Series 4-2019). Total indicative volume is A$500 million (US$340.9 million), with the potential to upsize, and is expected to price on or before 6 December. National Australia Bank is arranger and joint lead manager alongside ANZ, Standard Chartered Bank and United Overseas Bank.
On 3 December, National Australia Bank (NAB) (AA-/Aa3/AA-) revealed plans for an investor call regarding a potential Australian dollar denominated, additional tier-one (AT1) capital transaction. The notes are expected to be rated BBB- by S&P.
On 3 December, CNH Industrial Capital Australia (CNH Capital) (BBB/Baa3) began taking indications of interest for a debut three-year, Australian dollar denominated, benchmark transaction. Initial price guidance for the potential deal is 140 basis points area over semi-quarterly swap. ANZ and Citi are leading.
On 2 December, Pepper Group (Pepper) mandated Bank of America, MUFG Securities, National Australia Bank, RBC Capital Markets, Societe Generale and Westpac Institutional Bank to engage investors regarding a potential auto and equipment asset-backed securities (ABS) deal from its SPARKZ programme. Subject to market conditions, the transaction is expected to launch in early 2020.
Financial institution (FI) issuance has been a laggard even as Australian dollar green, social and sustainability (GSS) bond issuance volume has nearly doubled in 2019. However, following its second sustainability bond print, Bank Australia says engagement with the asset class continues to grow as sustainability and responsible banking issues hit home with investors and customers.
On 2 December, Bendigo and Adelaide Bank (BEN) (BBB+/A3/A-) launched a 2.75-year Australian dollar denominated, senior-unsecured, benchmark transaction, offered in either or both fixed- and floating-rate format. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 85 basis points area over swap benchmarks.