News
Issuance in the second full week of June was dominated by National Australia Bank's A$2.5 billion (US$1.7 billion) five-year dual-tranche senior deal, Macquarie Bank's A$2.25 billion multi-tranche senior deal and ANZ Banking Group's A$1.5 billion residential mortgage-backed securities transaction. Two additional taps completed Australian deal activity for the week.
On 13 June, Macquarie Bank (A/A2/A) began taking indications of interest for a three-year Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate note (FRN) formats and for a one-year senior-unsecured FRN. The three-year tranche has initial price guidance of 80 basis points area over swap benchmarks while the one-year tranche is being marketed at 45 basis points area over three-month bank bills.
On 13 June, Avanti Finance (Avanti) launched its residential mortgage-backed securities (RMBS) deal, Avanti RMBS 2019-1. The forthcoming transaction is expected to price on or before 18 June and is capped at NZ$200 million (US$131.6 million). Westpac New Zealand is the arranger and sole lead manager.
A dearth of public corporate issuance and clarity around interest-rate direction provided a window of opportunity for PACCAR Financial to bring a quickfire return to the Australian market. The transaction, the issuer’s second in nine months, was two-times subscribed based on a final book in excess of A$320 million (US$222.6 million).
On 12 June, National Australia Bank (NAB) (AA-/Aa3/AA-) launched a new self-led, five-year, benchmark senior-unsecured domestic deal. The forthcoming transaction will come in either or both fixed- and floating-rate formats, and has indicative price guidance of 95 basis points area over swap benchmarks. Pricing is expected on the day of launch.
On 12 June, Mercury launched a subordinated-capital deal, for up to NZ$300 million (US$197.5 million) to New Zealand retail and institutional investors, with an indicative margin range of 210-225 basis points over mid swap. The notes have a first interest rate reset date on 11 July 2024 and a final maturity on 11 July 2049. The bonds are expected to be rated BB+ by S&P Global Ratings.
On 11 June, following the release of the Queensland state budget, Queensland Treasury Corporation (QTC) revealed a borrowing programme for the 2019/20 financial year of A$9.9 billion (US$6.9 billion). The requirement is a A$700 million reduction from the forward estimate in the 2018/19 forecast.