News
Domestic activity in the third week of July was highlighted by ANZ Banking Group's A$1.75 billion (US$1.2 billion) tier-two deal as well as KfW Bankengruppe's A$450 million, five-year Kangaroo green bond. Meanwhile in New Zealand, International Finance Corporation printed a five-year NZ$600 million (US$402.4 million) Kauri transaction.
On 17 July, United Overseas Bank Sydney Branch (UOB Sydney) printed the domestic market’s first repo-eligible deal since Australian Prudential Regulation Authority (APRA)’s announcement on total loss-absorbing capacity on 9 July. While much focus has been on financial institution (FI) regulatory-capital transactions in recent weeks, senior-unsecured pricing has tightened to record lows.
KfW Bankengruppe (KfW) returned to the Australian green-bond market on 17 July with a A$450 million (US$317.7 million) five-year green bond, four years after its inaugural green Kangaroo. Lars Ainsley, senior manager, new issues and capital markets at KfW in Frankfurt shares the agency’s perspective on green-bond market development with KangaNews.
On 19 July, Bank of Queensland (BOQ) revealed plans for a new Australian dollar denominated residential mortgage-backed securities (RMBS) deal from its REDS programme. ANZ, Macquarie Bank, National Australia Bank and Westpac Institutional Bank have been mandated to engage investors.
On 19 July, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$25 million (US$17.7 million) increase of its June 2029 Kangaroo bond. Indicative price guidance for the forthcoming transaction is 43 basis points area over semi-quarterly swap, equivalent to 53.3 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager Nomura.
BNG Bank (AAA/Aaa/AAA) launched a minimum A$15 million (US$10.6 million) increase to its April 2029 Kangaroo line, on 19 July. Indicative price guidance for the forthcoming transaction is 52 basis points area over semi-quarterly swap, equivalent to 60.45 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager TD Securities.
On 19 July, Northern Territory Treasury Corporation (NTTC) (Aa3) revealed plans for a new, May 2029, syndicated Australian dollar denominated benchmark deal. The transaction is expected to launch in the near future. ANZ, National Australia Bank and UBS are leading.
On 19 July, People's Choice Credit Union (People's Choice) began taking indications of interest for its new residential mortgage-backed securities (RMBS) deal, Light Trust 2019-1. Indicative total volume for the transaction is A$500 million (US$353 million) and is expected to launch in the week beginning 22 July. National Australia Bank is arranger for the deal and joint lead manager alongside ANZ, Macquarie Bank and Westpac Institutional Bank.