News
On 11 November, Suncorp Group (Suncorp) announced an indicative A$250 million (US$171.5 million), additional tier-one (AT1) capital deal, Capital Notes 3. The notes are perpetual and have an optional conversion date on 17 June 2026 and mandatory conversion on 17 June 2028. The deal is being marketed at 300-320 basis points over three-month bank bills, with the final margin and interest rate expected to be determined on 18 November following a bookbuild.
Deal sources say Coles Group (Coles) was able to include a 10-year tranche in its first deal since demerging from Wesfarmers on the back of significant investor demand, while the issuer’s brand and deal preparation held it in good stead during a period of substantial deal flow.
On 11 November, Dunedin City Treasury (AA by S&P) launched a dual-tranche, domestic senior-secured deal with indicative aggregate volume of NZ$100 million (US$63.3 million). The three- and seven-year tranches have indicative price guidance of 42-45 basis points area and 72-76 basis points area over mid swap respectively. Pricing is expected on the day of launch, according to lead manager ANZ.
The first full week of November in the Australian public market was highlighted by National Australia Bank's A$1.4 billion (US$963.1 million) 12-year non-call seven-year, tier-two deal and Citibank N.A. Sydney Branch's debut A$750 million transaction. Meanwhile, Housing New Zealand Limited delivered a NZ$400 million (US$254.4 million) tap to its October 2026 wellbeing-bond.
On 8 November, South Australian Government Financing Authority (SAFA) (AA+/Aa1) announced it expects to launch a syndicated increase to its May 2030 bond on 11 November. ANZ, Deutsche Bank, RBC Capital Markets and Westpac Institutional Bank are leading.
On 8 November, Macquarie University (Aa2) launched a new 25-year, Australian dollar denominated transaction – having earlier launched a 10.5-year sustainability bond deal on the same day. The 25-year tranche has indicative yield to maturity of 3.1 per cent. HSBC and National Australia Bank are leading.
On 8 November, Macquarie University (Aa2) launched a new 10.5-year, Australian dollar denominated sustainability bond transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 95-100 basis points area over semi-quarterly swap. HSBC and National Australia Bank are leading.
On 7 November, Commonwealth Bank of Australia (CommBank) began taking indications of interest for an inaugural Australian Overnight Index Average (AONIA)-linked, residential mortgage-backed securities (RMBS) transaction, Medallion 2019-1. The self-led deal has indicative total volume of A$1 billion (US$686.7 million) is expected to launch and price in November.