News
Kommunalbanken Norway (KBN) (AAA/Aaa) launched a new, 10.5-year, minimum A$50 million (US$34.8 million) Kangaroo transaction, on 14 May. The forthcoming deal has indicative price guidance of 53 basis points area over semi-quarterly swap, equivalent to 71.65 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager J.P. Morgan.
On 14 May, Bendigo and Adelaide Bank (BEN) mandated ANZ, Deutsche Bank, Macquarie Bank, National Australia Bank and Westpac Institutional Bank to arrange meetings with residential mortgage-backed securities (RMBS) investors in London and Sydney, commencing 28 May, regarding a potential capital-effective transaction from its Torrens RMBS programme.
On 14 May, BNG Bank (AAA/Aaa/AAA) launched a minimum A$15 million (US$10.4 million) increase to its existing April 2029 Kangaroo bond. The forthcoming transaction is being marketed at 54 basis points area over semi-quarterly swap, equivalent to 66.5 basis points area over Australian Commonwealth government bond. The deal will price on the day of launch, according to lead manager RBC Capital Markets.
Western Australian Treasury Corporation (WATC) revealed a A$7.7 billion (US$5.3 billion) borrowing programme for the 2019/20 financial year on 13 May, following the release of the Western Australia (WA) state budget on 9 May. The new-money requirement is A$1.1 billion, down from the estimated A$1.5 billion at the last update on 31 March.
On 13 May, expected ratings were assigned by S&P Global Ratings and Moody's Investors Service to ME Bank's residential mortgage-backed securities (RMBS) deal, SMHL Series Securitisation Fund 2019-1. The deal has indicative total volume of $750 million (US$523.2 million). ANZ, Commonwealth Bank of Australia, MUFG Securities, National Australia Bank and Westpac Institutional Bank were mandated for the transaction on 13 May.
On 13 May, Pepper launched its nonconforming and prime residential mortgage-backed securities (RMBS) deal, Pepper PRS 24. The forthcoming transaction has capped total volume of A$750 million (US$523.2 million) equivalent, including Australian dollar, euro and US dollar tranches in Reg S and 144a formats. The euro tranche will be exclusively backed by green mortgages. Pricing is expected on or around 15 May.
On 13 May, Members Banking Group (BBB+/Baa1), operating as RACQ Bank, mandated ANZ and National Australia Bank to organise a debt investor update conference call on 14 May, regarding a potential new, three-year, senior-unsecured Australian dollar denominated transaction.
ME Bank revealed plans for a new residential mortgage-backed securities (RMBS) deal, from its SMHL programme on 13 May. ANZ, Commonwealth Bank of Australia, MUFG Securities, National Australia Bank and Westpac Institutional Bank have been mandated to engage investors for the transaction.
On 13 May, Firstmac began taking indications of interest for its potential residential mortgage-backed securities (RMBS) deal, Firstmac Mortgage Funding Trust No.4 Series 2-2019. The transaction has indicative total volume of A$500 million (US$349.5 million), with the potential to be upsized. ANZ is arranger for the transaction and joint lead manager alongside J.P. Morgan, National Australian Bank, Standard Chartered Bank, United Overseas Bank and Westpac Institutional Bank.
The first full week of May broke the issuance hiatus in Australia, with major banks pricing two of the largest transactions since before Easter. In addition to Westpac Banking Corporation's A$3.5 billion (US$2.5 billion) multi-tranche domestic benchmark and National Australia Bank's A$1 billion tier-two deal, Citibank also issued a A$1.25 billion three-year global.
On 9 May, National Australia Bank (NAB) became the first Australian major bank to price a tier-two deal since Australian Prudential Regulation Authority (APRA)’s proposed changes to tier-two capital requirements were released in November 2018. The issuer and lead say a small pricing premium still exists due to uncertainty around the instrument, but that investor appetite remains.
On 10 May, Australian Capital Territory (ACT) (AAA by S&P) revealed plans for a new, 10-year, domestic benchmark transaction, expected to launch in the near future. Commonwealth Bank of Australia, National Australia Bank and UBS have been mandated as joint lead managers.