News
On 27 May, PACCAR Financial (A+ by S&P) mandated ANZ and Westpac Institutional Bank to arrange an investor conference call on 29 May, regarding a potential Australian dollar denominated transaction.
European Investment Bank (EIB) launched a new, long five-year, minimum A$300 million (US$207.8 million) climate-awareness bond, on 27 May. The forthcoming transaction has indicative price guidance of 38 basis points area over semi-quarterly swap.
On 27 May, ME Bank launched its residential mortgage-backed securities (RMBS) deal, SMHL 2019-1. The transaction is expected to price on or before 31 May and has indicative minimum total volume of A$750 million (US$519.8 million). ANZ is arranger for the deal and joint lead manager alongside Commonwealth Bank of Australia, MUFG Securities, National Australia Bank and Westpac Institutional Bank.
Residential mortgage-backed securities (RMBS) issuance was to the fore in the Australian market during the last full week of May, with Liberty Financial and Firstmac both pricing A$1.4 billion (US$964 million) deals. Meanwhile, Crédit Agricole printed a A$600 million EMTN and Svenska Handelsbanken brought a A$500 million Kangaroo bond - the first Kangaroo by a financial-institution issuer in 2019.
On 24 May, ANZ Banking Group (ANZ) revealed plans for a residential mortgage-backed securities (RMBS) deal from its Kingfisher programme. ANZ will arrange investor meetings in the week commencing 27 May.
Maximising domestic investor engagement was a key strategy for the Export-Import Bank of Korea (Kexim) as it issued in the Kangaroo market for the first time this year. Kexim is also the first Korean entity to price an Australian dollar domestic deal in 2019.
On 23 May, expected ratings were assigned by Fitch Ratings and S&P Global Ratings to Bendigo and Adelaide Bank (BEN)'s residential mortgage-backed securities (RMBS) deal, Torrens Series 2019-1 Trust. The deal has indicative total volume of A$500 million (US$343.7 million). ANZ, Deutsche Bank, Macquarie Bank, National Australia Bank and Westpac Institutional Bank were mandated for the transaction on 14 May.
Crédit Agricole priced a A$600 million (US$412.7 million), 15-year non-call 10-year tier-two EMTN deal on 21 May. The deal surprised to the upsize on volume and brought significant diversification of investors according to Crédit Agricole CIB’s syndicate in Australia and Hong Kong, who say the result was sufficient to pique the issuer’s interest in further Australian dollar issuance.
The Australian Office of Financial Management (AOFM) published draft investment principles for the Australian Business Securitisation Fund (ABSF) on 23 May. The proposed investment approach is notably broad, with the AOFM planning to take a “principles-based rather than prescriptive” approach to catalysing SME lending.