News
On 15 October, Resimac launched its new residential mortgage-backed securities (RMBS) deal, Bastille Trust Series 2019-1NC. The deal has a capped total volume of A$1 billion (US$677.2 million) equivalent, and is expected to price on or before 18 October. Commonwealth Bank of Australia and National Australia Bank (NAB) are arrangers for the Australian dollar tranches and joint lead managers alongside Citi and Deutsche Bank, while the US dollar tranche is arranged and lead by Citi and NAB.
On 15 October, Think Tank Group (Think Tank) began taking indications of interest for its new commercial mortgage-backed securities (CMBS) deal, Think Tank Series 2019-1. The deal has total indicative volume of A$350 million (US$237.2 million). Commonwealth Bank of Australia is arranger and joint lead manager alongside Deutsche Bank and Westpac Institutional Bank.
On 15 October, Australian Finance Group (AFG) began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, AFG 2019-2 Trust. The deal has total indicative volume of A$350 million (US$237.2 million), and is expected to launch in the week beginning 21 October. ANZ is arranger and joint lead manager alongside National Australia Bank and United Overseas Bank.
On 15 October, Australian Capital Territory (ACT) (AAA by S&P) launched a 12-year, Australian dollar denominated syndicated benchmark transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 76-80 basis points area over the 10-years future contract, equivalent to 71.3-75.3 basis points area over Australian Commonwealth government bond.
On 15 October, Teachers Mutual Bank (Teachers Mutual) (BBB/Baa1) mandated National Australia Bank and Westpac Institutional Bank for a new three-year, A$100 million (US$67.8 million) transaction. The forthcoming deal is being marketed at 95 basis points area over three-month bank bills.
La Trobe Financial tested the waters for greater volume in its latest residential mortgage-backed securities (RMBS) deal. The issuer achieved its record deal size and says improving credit quality and structural tweaks designed to meet specific demand helped increase the transaction’s appeal.
On 14 October, Mercedes-Benz Financial Services Australia (Mercedes-Benz Australia) launched its auto asset-backed securities (ABS) deal, Silver Arrow Australia 2019-1. The transaction's total indicative volume is A$580 million (US$394.3 million). ANZ is arranger and joint lead manager alongside MUFG Securities.
On 14 October, Australian Capital Territory (ACT) (AAA by S&P) revealed plans for a new 12-year, Australian dollar denominated syndicated benchmark transaction. Commonwealth Bank of Australia, National Australia Bank and UBS have been mandated as joint lead managers.
On 11 October, Commonwealth Bank of Australia (CommBank) completed a A$1.25 billion (US$848.7 million) bookbuild for its additional tier-one (AT1) capital transaction, PERLS XII. The margin has been set at 300 basis points over three-month bank bills, the tight end of the indicative range. The offer is expected to open on 17 October.
On 14 October, Argosy Property (Argosy) launched a NZ$75-100 million (US$47.5-63.3 million), seven-year green-bond for New Zealand retail and institutional investors. The forthcoming deal is being marketed at 175-195 basis points area over mid-swap. Pricing is expected on 18 October, according ANZ which is arranger as well as joint lead manager alongside Forsyth Barr, Jarden Securities and Hobson Wealth Partners.
Australian market deal activity in the second week of October was highlighted by Queensland Treasury Corporation's A$2.75 billion (US$1.8635 billion) August 2031 deal and Sumitomo Mitsui Financial Group's five-year A$625 million Reg S floating-rate note. Meanwhile, La Trobe Financial printed a A$1.25 billion residential mortgage-backed securities transaction.