News
Mortgage House priced its first-ever public residential mortgage-backed securities (RMBS) deal on 16 May, as it seeks to demonstrate its ability to source funding from outside its warehouse facilities. The issuer is confident that its origination offering stands out amid an increasingly crowded nonbank field.
On 15 May, World Bank priced a A$800 million (US$553 million) increase to its February 2024 Kangaroo bond, bringing the total outstanding in the line to A$2.1 billion. The tap was led by Deutsche Bank, Nomura and TD Securities and is the largest Australian dollar deal from a supranational, sovereign and agency (SSA) borrower since World Bank introduced the line in February with a A$1.3 billion deal.
Inter-American Development Bank (IADB) (AAA/Aaa) launched a minimum A$100 million (US$69.2 million) increase to its August 2024 Kangaroo bond, on 16 May. The forthcoming transaction has indicative price guidance of 35 basis points area over semi-quarterly swap, equivalent to 46.25 basis points area over Australian Commonwealth government bond.
On 16 May, Liberty Financial (Liberty) began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, Liberty Series 2019-2. The potential deal has indicative total volume of A$500 million (US$346.1 million) and is expected to launch in the week commencing 20 May. Westpac Institutional Bank is arranger for the transaction and joint lead manager alongside Bank of America Merrill Lynch, Commonwealth Bank of Australia, Deutsche Bank and National Australia Bank.
Citibank, the operating company (opco) issuer of Citi, issued its first-ever Australian dollar deal on 10 May. The transaction came in 3(a)(2) format, which limits domestic bank-balance-sheet participation. However, deal sources say the scarcity value of opco debt from a global bank was enticing for domestic fund managers.
