News
On 5 September, DBS Bank Australian Branch (DBS Australia) (AA-/Aa1/AA-) launched a new three-year, Australian dollar denominated benchmark deal, offered in either or both fixed- and floating-rate format. Indicative price guidance for the forthcoming transaction, which is expected to price on the day of launch, is 63 basis points area over swap benchmarks.
On 4 September, Societe Generale (SocGen) (A/A1/A+) revealed plans for an Australian dollar denominated perpetual non-call five-year additional tier-one (AT1) transaction. The potential deal is being marketed with an indicative coupon in the area of 5.375 per cent. The deal is expected to be rated BB+/Ba2.
New South Wales Treasury Corporation (TCorp) (AAA/Aaa) has revealed indicative price guidance of 30-33 basis points area over Australian Commonwealth government bond and 29.75-32.75 basis points area over the three-year futures contract for its new February 2024, domestic benchmark deal. The transaction was launched earlier in the day on 4 September and is expected to price on the following day. ANZ and Westpac Institutional Bank are leading.
On 4 September, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) launched a new February 2024, Australian dollar denominated benchmark syndicated deal. The forthcoming transaction is expected to price on the day after launch, according to joint lead managers ANZ and Westpac Institutional Bank.
On 4 September, MyState Bank began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, ConQuest 2019-2 Trust. Indicative total volume for the transaction is A$400 million (US$271.1 million), with launch expected in the week beginning 9 September. Macquarie Bank, National Australia Bank and Westpac Institutional Bank are leading.
On 4 September, BNG Bank (AAA/Aaa/AAA) launched a minimum A$20 million (US$13.6 million) tap of its July 2028 Kangaroo bond, via ANZ. The forthcoming deal is being marketed at 51 basis points area over semi-quarterly swap and 51.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 4 September, Bluestone Group (Bluestone) mandated Commonwealth Bank of Australia, Deutsche Bank, Macquarie Bank and National Australia Bank to engage investors for a potential Australian dollar denominated residential mortgage-backed securities (RMBS) transaction from its Sapphire programme.
On 4 September, DBS Bank Australian Branch (DBS Australia) (AA-/Aa1/AA-) began taking indications of interest for a three-year, Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate format. The potential deal is being marketed at 63 basis points area over swap benchmarks, according to joint lead managers Commonwealth Bank of Australia, DBS Bank, National Australia Bank and Westpac Institutional Bank.
KangaNews and RBC Capital Markets held their annual roundtable for heads of funding at Australia’s big-four banks at a fascinating juncture for the sector. Limited credit growth and highly supportive demand conditions are clearly assisting the funding task in the near term. The requirement to build much bigger tier-two debt books and the ever-present threat of volatility pose medium-term – but manageable – challenges.
ING Bank (ING) was the global pioneer of sustainability-linked loans (SLLs). In August, the bank hosted a roundtable with KangaNews in Sydney to discuss the product’s emergence and its relevance to Australian corporates. Borrowers say SLLs could gain traction above and beyond what green bonds have been able to deliver.