News
On 27 November, Firstmac began taking indications of interest for 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$339.4 million), with launched expected in the week beginning 2 December. ANZ, National Australia Bank, Standard Chartered Bank and United Overseas Bank are leading.
Commonwealth Bank of Australia (CommBank) believes it achieved all the objectives it set for its issuance of the first residential mortgage-backed securities (RMBS) deal to use the Australian overnight index average (AONIA) reference rate. The bank wanted to respond to regulatory guidance from the Reserve Bank of Australia (RBA) with a broadly distributed benchmark transaction that also provided capital relief.
The return of 10-year issuance opportunities in the Australian corporate market brought another household name – Qantas Airways (Qantas) – to market on 20 November. Transaction sources say the deal had broad support domestically and abroad, and also featured a landmark for retail investor involvement in domestic debt-capital markets.
On 26 November, AMP revealed plans for an indicative A$200 million (US$135.5 million) additional tier-one (AT1) capital transaction. The deal is being marketed in the range of 450-470 basis points over three-month bank bills, with the final margin and interest rate to be determined following a bookbuild, expected on 3 December.
On 26 November, Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) launched a three-year, Australian dollar denominated, floating-rate note, benchmark green-bond transaction. The forthcoming deal is being marketed at 65 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to ANZ, BNP Paribas, Commonwealth Bank of Australia, OCBC and Westpac Institutional Bank.
On 26 November, Bank Australia (BBB/Baa1) launched a A$100 million (US$67.8 million) three-year, floating-rate note, sustainability bond transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 90-93 basis points area over three-month bank bills. ANZ and National Australia Bank are leading.
As a growing group of borrowers become seasoned issuers in the green, social and sustainability (GSS) bond market, participants’ attention is increasingly turning to ongoing reporting on use of proceeds and sustainable assets. New South Wales Treasury Corporation (TCorp) took a lead position on reporting in October and followed a few weeks later with a second GSS bond.
On 25 November, Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) mandated ANZ, BNP Paribas, Commonwealth Bank of Australia, OCBC and Westpac Institutional Bank to arrange an investor call regarding a potential three-year, Australian dollar denominated, floating-rate note green bond transaction.
On 25 November, ING Bank Australia (ING Australia) launched its residential mortgage-backed securities (RMBS) deal, IDOL 2019-1 Trust. The transaction has a total volume of A$750 million (US$509.2 million), with the potential to upsize. Pricing is expected on or before 29 November, according to joint lead managers ANZ, ING, Macquarie Bank, Standard Chartered Bank and Westpac Institutional Bank.
On 25 November, Beyond Bank launched its residential mortgage-backed securities (RMBS) deal, Barton Series 2019-1. The deal has a capped total volume of A$500 million (US$339.5 million), with pricing expected on or before 28 November. ANZ and Westpac Institutional Bank are leading.