News
On 30 October, flexigroup mandated Commonwealth Bank of Australia and National Australia Bank to engage investors in Sydney and Melbourne beginning 6 November regarding a potential asset-backed securities (ABS) deal, Flexi ABS Trust 2019-2. Total indicative volume for the transaction is A$232.75 (US$159.9 million) and is expected to include green tranches. Fitch Ratings and Moody's Investors Service released expected ratings for the transaction on the same day.
On 29 October, Bendigo and Adelaide Bank (BEN) mandated ANZ, Macquarie Bank, National Australia Bank and Westpac Institutional Bank to engage investors regarding a potential residential mortgage-backed securities (RMBS) deal, Torrens Series 2019-2 Trust. Total indicative volume for the transaction is A$500 million (US$342.7 million), with launch expected mid-November. Fitch Ratings and S&P Global Ratings released expected ratings for the transaction on the same day.
On 29 October, Coles Group (Coles) (BBB+/Baa1) launched a new dual-tranche, Australian dollar denominated benchmark transaction. The forthcoming deal consists of seven-year and 10-year tranches, and is expected to price on the day after launch. Indicative price guidance for the tranches is, respectively, 125-130 and 150-155 basis points area over semi-quarterly swap.
On 29 October, Verizon Communications (Verizon) (BBB+/Baa1/A-) launched a new multi-tranche Kangaroo transaction. The forthcoming deal consists of 6.5-year, 10.5-year and 20-year tranches, and is expected to price on the day after launch. Indicative price guidance for the tranches is, respectively, 115, 145 and 205 basis points area over semi-quarterly swap.
On 29 October, Columbus Capital launched its residential mortgage-backed securities (RMBS) deal, Triton 2019-3. Total indicative volume for the transaction is A$500 million (US$341.9 million), with the potential to upsize to A$1 billion, and is expected to price on or before 1 November. National Australia Bank is arranger and joint lead manager alongside Natixis, SMBC Nikko, Standard Chartered and Westpac Institutional Bank.
Origin Energy Finance (Origin) (BBB/Baa2) launched a new eight-year Australian dollar denominated benchmark transaction on 29 October. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 170-175 basis points area over semi-quarterly swap. ANZ, Citi and Commonwealth Bank of Australia are leading.
On 28 October, Pepper Group (Pepper) launched its residential mortgage-backed securities (RMBS) deal, PRS 25. The forthcoming deal is capped at A$750 million (US$511.3 million) equivalent and includes US dollar denominated and green-asset-backed euro denominated tranches. Pricing is expected on or before 1 November.
The Australian Prudential Regulation Authority (APRA)’s latest update to rules covering bank additional-capital instruments could constrict liquidity in tier-two securities at the margin. Better news for the banks came from S&P Global Ratings (S&P), which has upgraded the economic component of its banking industry country risk assessment (BICRA) for Australia and with it the ratings of the big-four banks’ additional-capital securities.
On 28 October, Beyond Bank mandated ANZ and Westpac Institutional Bank to engage investors in Sydney and Melbourne in the week beginning 11 November regarding a potential Australian dollar denominated, capital relief and funding, residential mortgage-backed securities (RMBS) transaction.
On 28 October, Verizon Communications (Verizon) (BBB+/Baa1/A-) mandated Deutsche Bank, Mizuho Securities, RBC Capital Markets and TD Securities for a potential multi-tranche Kangaroo deal, with maturities up to 20 years.