News
End users can no longer ignore the domestic and international process of reforming benchmark rates, according to speakers at the International Swaps and Derivatives Association (ISDA)’s annual Australian conference in Sydney. The local market is less than halfway through its own transition and the main concern is lack of engagement from many issuers and investors.
DBS Bank (DBS) priced the first Kangaroo covered bond since September 2017 on 17 October. The issuer says global demand for covered bonds has been higher in 2019 than in previous years and adds that the stability of the Australian dollar market compared with other alternatives makes it particularly attractive.
Korea Southern Power (Aa2/AA-) launched a new five-year, senior-unsecured, benchmark Kangaroo floating-rate note (FRN) on 23 October. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 100 basis points area over three-month bank bills. BNP Paribas, HSBC and Nomura are leading.
On 23 October, Bank of Queensland (BOQ) (BBB+/A3/A-) launched a five-year, Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate format. Indicative price guidance for the forthcoming deal is 110 basis points area over swap benchmarks and is expected to price on the day of launch. ANZ, National Australia Bank, UBS and Westpac Institutional Bank are leading.
On 23 October, Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa2) launched its new January 2030, Australian dollar denominated syndicated benchmark transaction. Indicative price guidance for the forthcoming deal is 72-76 basis points area over the 10-year futures contract, equivalent to 71.1-75.1 basis points area over Australian Commonwealth government bond.
On 22 October, Bank of Queensland (BOQ) (BBB+/A3/A-) began taking indications of interest for its new five-year, senior-unsecured, domestic transaction, offered in either or both fixed- and floating-rate format. The deal is being marketed at 110 basis points area over swap benchmarks and is expected to launch in the near future, according to ANZ, National Australia Bank, UBS and Westpac Institutional Bank.
On 22 October, Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa2) revealed plans for a new January 2030, Australian dollar denominated syndicated benchmark transaction. ANZ, National Australia Bank and UBS are leading.
On 22 October, Pepper Group (Pepper) mandated Citi, Commonwealth Bank of Australia, National Australia Bank, Natixis Asia, Société Générale (SocGen) and Westpac Institutional Bank to engage investors regarding a potential nonconforming residential mortgage-backed securities (RMBS) transaction.
Korea Southern Power (Aa2/AA-) began taking indications of interest for a new five-year Kangaroo benchmark floating-rate note (FRN) on 22 October. The deal is being marketed at 100-103 basis points area over three-month bank bills and is expected to launch in the near future. BNP Paribas, HSBC and Nomura are leading.