News
On 23 July, People's Choice Credit Union (People's Choice) launched its residential mortgage-backed securities (RMBS) deal, Light Trust 2019-1. Indicative total volume for the transaction, which is expected to price on or before 26 July, is A$500 million (US$351.6 million) with the potential to increase to A$650 million. National Australia Bank is arranger, and is also joint lead manager alongside ANZ, Macquarie Bank and Westpac Institutional Bank.
On 23 July, Suncorp-Metway (Suncorp) (A+/A1/A+) launched a new five-year, Australian dollar denominated benchmark deal, offered in either or both fixed- and floating-rate formats. Indicative price guidance for the transaction, which is expected to price on day of launch, is 80 basis points area over swap benchmarks. ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank are leading.
On 22 July, RedZed Lending Solutions (RedZed) launched its residential mortgage-backed securities (RMBS) deal, RedZed Trust Series 2019-1. The forthcoming transaction has capped total volume of A$400 million (US$281.7 million) and is expected to price on or before 25 July. National Australia Bank is the arranger for the transaction as well as joint lead manager alongside Commonwealth Bank of Australia.
On 22 July, BNG Bank (AAA/Aaa/AAA) launched a minimum A$50 million (US$35.2 million) tap of its August 2026 Kangaroo bond, via Commonwealth Bank of Australia and Nomura. The forthcoming deal is being marketed at 48 basis points area over semi-quarterly swap and 56.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch.
Westpac Banking Corporation (Westpac) was the first Australian major bank to print a tier-two deal following the Australian Prudential Regulation Authority (APRA)’s final total loss-absorbing capacity (TLAC) requirement ruling. The issuer says a lower-than-expected incremental tier-two requirement makes the task more manageable and current conditions provided a tailwind, but longer-term questions are yet to be resolved.
International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$25 million (US$17.6 million) increase to its June 2029 Kangaroo bond, on 22 July. Indicative price guidance for the forthcoming transaction is 43 basis points area over semi-quarterly swap, equivalent to 53.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager Nomura.
International Finance Corporation (IFC)’s return to the Kauri market on 17 July was the first such transaction since early April. Deal sources say conditions have markedly improved, to the extent that pricing achieved by the issuer was more attractive than US dollar levels.
On 22 July, Northern Territory Treasury Corporation (NTTC) (Aa3) launched a new, May 2029, syndicated Australian dollar denominated benchmark transaction. Indicative price guidance for the forthcoming deal is 77-80 basis points area over the 10-year futures contract, equivalent to 77.8-80.8 basis points area over Australian Commonwealth government bond.
On 22 July, Westpac New Zealand (Westpac NZ) (AA-/A1/AA-) launched a new, five-year, senior-unsecured domestic deal with indicative priced guidance of 85-90 basis points over mid-swap. The self-led transaction is for up to NZ$100 million (US$67.6 million) with the ability to take oversubscriptions. Pricing is expected on or before 24 July.