News
On 30 May, AMP Bank began taking indications of interest for its new residential mortgage-backed securities (RMBS) deal, Progress 2019-1 Trust. The forthcoming transaction has minimum total volume of A$750 million (US$519.1 million) and is expected to launch on 3 June. National Australia Bank is arranger for the transaction and joint lead manager alongside ANZ, Commonwealth Bank of Australia, Deutsche Bank and MUFG Securities.
Export Development Canada (EDC) (AAA/Aaa) launched a capped A$200 million (US$138.6 million) tap of its May 2023 Kangaroo bond on 29 May, via Commonwealth Bank of Australia and TD Securities. The forthcoming deal is being marketed in the area of 35 basis points over semi-quarterly swap and is expected to price on the day after launch.
Bank of Queensland (BOQ) says its conditional pass-through (CPT) covered-bond platform offers an important point of funding differentiation following its second-ever euro deal in this format. At a time when a cluster of BOQ’s peers are pursuing residential mortgage-backed securities (RMBS) issuance, BOQ says CPT covered bonds offered an attractive cost of funds and further investor diversification.
KangaNews is proud to reveal the results of its 2019 Fixed-Income Research Poll, in which Australian institutional investors are asked to vote for the best research providers across a range of sectors. The ninth iteration of the poll has a familiar look across most categories – consistency of performance is a hallmark of this survey – but there are still a clutch of changes at the top of specific categories.
On 28 May, BNG Bank (AAA/Aaa/AAA) launched a new, minimum A$250 million (US$173.2 million) November 2025 Kangaroo sustainability bond. The forthcoming transaction has indicative price guidance of 50 basis points area over semi-quarterly swap, equivalent to 66.8 basis points area over Australian Commonwealth government bond. RBC Capital Markets and Nomura are joint lead managers.
Participants in Australia’s first syndicated sustainability-performance-linked loan (SLL) say the product could catalyse a significant uptick in corporate engagement with environmental, social and governance (ESG)-linked funding. SLLs are becoming more prominent globally and Sydney Airport’s debut demonstrates that they can have wider applicability for corporate borrowers than other ESG debt instruments.
On 27 May, following the release of the Victoria state budget, Treasury Corporation of Victoria (TCV) revealed a total funding requirement for the 2019/20 financial year of A$5.5 billion (US$3.8 billion). The task is an increase from the A$4.6 billion forecast 2018/19 requirement announced following the 2018 state budget.
On 27 May, expected ratings were assigned by Moody's Investors Service and Fitch Ratings to ANZ Banking Group (ANZ)'s residential mortgage-backed securities (RMBS) deal, Kingfisher Trust 2019-1. The deal has indicative total volume of A$750 million (US$520 million).