News
On 1 October, La Trobe Financial began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, La Trobe Financial Capital Markets Trust 2019-2. The deal has total indicative volume of A$750 million (US$505.3 million), with the potential to upsize, and is expected to launch in the week beginning 7 October. National Australia Bank is arranger for the transaction and joint lead manager alongside Commonwealth Bank of Australia, HSBC, Macquarie Bank, Natixis, United Overseas Bank and Westpac Institutional Bank.
BNG Bank (AAA/Aaa/AAA) launched a minimum A$20 million (US$13.5 million) increase to its July 2028 Kangaroo bond on 1 October. The deal is being marketed at 51 basis points area over semi-quarterly swap, equivalent to 50 basis points area over Australian Commonwealth government bond and is expected to price on the day of launch. TD Securities is leading.
On 1 October, Think Tank Group (Think Tank) mandated Commonwealth Bank of Australia, Deutsche Bank and Westpac Institutional Bank to arrange a series of investor meetings in Australia commencing 8 October regarding a potential Australian dollar denominated, SME commercial mortgage-backed securities (CMBS) deal.
On 1 October, Auckland International Airport (Auckland Airport) (A- by S&P) launched an indicative NZ$100 million (US$62.6 million) three-year floating-rate note (FRN) transaction, via ANZ. The forthcoming deal is being marketed at 65-70 basis points area over three-month bank bills and is expected to price on the day after launch.
On 30 September, S&P Global Ratings assigned a preliminary rating to Mercedes-Benz Financial Services Australia (Mercedes-Benz Australia)'s asset-backed securities (ABS) deal, Silver Arrow Australia 2019-1. Indicative total volume for the transaction is A$580 million (US$391.9 million). ANZ and MUFG Securities were mandated on 24 September to engage investors.
John Deere Financial (John Deere) priced its largest-ever Australian dollar deal in on 24 September. The issuer says deepening liquidity allowed it to fund a greater proportion of its Australian business locally and that it now has greater confidence on local volume.
On 27 September, Pepper mandated National Australia Bank to engage investors regarding an Australian dollar denominated refinancing of its PRS19 Class A1-u2 note and a US dollar denominated refinancing of its i-Prime 2018-2 Class A1-u1 note.
The final full week of September saw Mitsubishi UFJ Financial Group's A$500 million (US$337.9 million) five-year, TLAC-eligible, dual-tranche green-bond transaction - the first offshore financial institution to execute a green-bond in Australian dollars. Meanwhile, John Deere Financial printed A$500 million in a five-year deal and Downer Group Finance tapped its April 2026 maturity by A$200 million.
On 27 September, Volkswagen Financial Services Australia (Volkswagen Australia) revealed a book update and price guidance for its asset-backed securities (ABS) deal, Driver Australia Six Trust, following its launch on 26 September. Indicative total volume for the transaction is A$703 million (US$475.2 million), with pricing expected 2 October.
