News
On 7 August, ING Bank Australia (ING Australia) (A/A3/A) launched a new five-year, Australian dollar denominated benchmark covered bond, to come in either or both fixed- and floating-rate formats. Indicative price guidance for the forthcoming deal, which is expected to price the day after launch, is 67 basis points area over swap benchmarks.
On 7 August, HSBC New Zealand Branch (HSBC NZ) (AA-/Aa3) mandated ANZ, HSBC and Westpac Banking Corporation New Zealand Branch for a potential New Zealand dollar denominated transaction. The deal will be offered in either or both three-year floating-rate note and a five-year fixed-rate formats and may launch in the near future.
On 7 August, QIC Finance, the issuing entity of QIC Shopping Centre Fund (A- by S&P) launched a new, six-year domestic green-bond deal to come in either or both fixed- and floating-rate formats. Indicative price guidance for the forthcoming transaction is 140 basis points area over swap benchmarks, with pricing expected on the day of launch.
On 7 August, Motor Trade Finance (MTF) launched its Rambler Trust 2019 New Zealand dollar denominated asset-backed securities (ABS) deal. The forthcoming transaction has indicative total volume of NZ$280 million (US$183.1 million) and is expected to price as early as the day after launch. Commonwealth Bank of Australia and Westpac New Zealand are arrangers and joint lead managers.
On 7 August, Police Bank (BBB/BBB+) launched a new one-year, indicative A$15 million (US$10.1 million) floating-rate note (FRN) transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 55 basis points area over three-month bank bills. Westpac Institutional Bank is the sole lead manager.
An influx of financial institution (FI) supply from outside the domestic major-bank space came to the Australian dollar market in July. Market sources say the reality of a likely decline in major-bank senior supply going forward – and consequently tighter big-four senior spreads – has caused demand to spike, supporting increased issuance diversity.
On 6 August, FlexiGroup launched its new asset-backed securities (ABS) deal under its Q Card Trust programme. The forthcoming transaction has indicative volume of NZ$250 million (US$163.6 million), including the refinance of NZ$136.25 million of maturing notes, and is expected to price 8 August. Westpac New Zealand is arranger for the deal and joint lead manager alongside BNZ.
Australian market deal activity for the week bridging July and August was dominated by issuance from financial institutions, with highlights being Macquarie Bank's A$1.35 billion (US$919.9 million) August 2024 dual-tranche deal and benchmark transactions from Mizuho Bank Sydney Branch and Lloyds Bank.
On 2 August, World Bank (AAA/Aaa) revealed plans for a tap of its August 2020 Bond-i Kangaroo deal via Commonwealth Bank of Australia, RBC Capital Markets and TD Securities. The transaction will be open to investors in Australia and Singapore, to enable a broadening of the domestic-only inaugural deal. Investor update calls will take place on 5 and 6 August.