News
The final full week of October saw Korea Southern Power's debut in the Australian public market with a five-year, A$300 million (US$204.5 million) Kangaroo transaction. Meanwhile, United Energy Distribution priced a seven-year A$300 million deal and Think Tank Group executed its first commercial mortgage-backed securities deal of the year with a A$350 million print.
A cluster of long-dated semi-government deals priced between late September and late October. Deal sources say the semi-government curve has steepened in the long end, while a significant redemption profile in the government sector has led domestic investors strongly to support deals.
On 25 October, Virgin Australia revealed plans for a potential five-year, Australian dollar denominated, unsecured ASX-listed deal. Morgan Stanley, Morgans Financial, Ord Minnett and UBS have been mandated to engage investors in Sydney, Melbourne and Brisbane in the week beginning 28 October.
On 25 October, Woolworths Holdings (Woolworths) mandated National Australia Bank to arrange a series of fixed-income investor meetings for its subsidiaries Country Road and David Jones, regarding a potential Australian dollar denominated transaction.
On 25 October, Pepper Group (Pepper) began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, PRS 25. The deal is capped at A$750 million (US$511.3 million) equivalent and includes US dollar denominated and green-asset-backed euro denominated tranches. Launch is expected in the week beginning 28 October.
On 24 October, Columbus Capital began taking indications of interest for its new residential mortgage-backed securities (RMBS) deal, Triton 2019-3. Total indicative volume for the transaction is A$500 million (US$342.5 million), with the potential to upsize to A$1 billion, and is expected to launch in the week beginning 28 October. National Australia Bank, Natixis, SMBC Nikko, Standard Chartered and Westpac Institutional Bank were mandated to engage investors on 9 October.
On 24 October, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) revealed plans for an inaugural sustainability-bond transaction, the proceeds from which are earmarked to finance green and social assets. TCorp will undertake a roadshow prior to the launch of the deal. ANZ, Bank of America Merrill Lynch and National Australia Bank have been mandated as joint lead managers.
While a recent clutch of 10-year deals in the Australian dollar corporate market has provided confidence that investor support can be found at tenor, United Energy Distribution (UED) opted for seven-year duration in its domestic return. The issuer says this tenor was the best match for its funding need.
