News
Declining interest rates and the global hunt for yield has opened pricing opportunities for offshore financial institutions (FIs) to issue Australian dollar additional tier-one (AT1) instruments for the first time in more than a decade. UBS Group (UBS), BNP Paribas and Societe Generale have all printed AT1 deals in Australian dollars since July.
On 9 September, La Trobe Financial mandated Commonwealth Bank of Australia, HSBC, Macquarie Bank, National Australia Bank, Natixis, United Overseas Bank and Westpac Institutional Bank to arrange a series of domestic and offshore investor meetings, beginning 19 September, regarding a potential residential mortgage-backed securities (RMBS) deal.
On 9 September, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new 10.5-year, Kangaroo green bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 43 basis points area over semi-quarterly swap, equivalent to 54.25 basis points area over Australian Commonwealth government bond. Deutsche Bank, Mizuho Securities and RBC Capital Markets are leading.
On 9 September, MyState Bank launched its residential mortgage-backed securities (RMBS) deal, ConQuest 2019-2 Trust. Capped total volume for the transaction is A$400 million (US$273.8 million), with pricing expected on the day after launch. National Australia Bank is arranger for the deal and joint lead lead manager alongside Macquarie Bank and Westpac Institutional Bank.
The first full week of September in the Australian market was highlighted by New South Wales Treasury Corporation's A$1.75 billion (US$1.194 billion) mid-curve transaction and a A$700 million DBS Bank Australian Branch three-year print. Meanwhile, Toyota Finance New Zealand priced a NZ$100 million (US$63.9 million) five-year trade.
BNG Bank (AAA/Aaa) launched a minimum A$20 million (US$13.6 million) increase to its July 2028 Kangaroo bond on 6 September. The forthcoming deal is being marketed at 51 basis points area over semi-quarterly swap, equivalent to 50.6 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager J.P. Morgan.
On 6 September, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$25 million (US$17 million) increase to its June 2029 Kangaroo bond. Indicative price guidance for the forthcoming transaction is 43 basis points area over semi-quarterly swap, equivalent to 46.45 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager Nomura.