News
Westpac Banking Corporation (Westpac)’s self-led deal on 8 May was the first of significant volume from any sector to come to the Australian market since mid-April, with public holidays and a Reserve Bank of Australia (RBA) cash-rate decision giving cause for pause. The issuer says the transaction’s outcome proves that the market remains highly constructive.
Council of Europe Development Bank (CEB) (AA+/Aa1) launched an indicative A$30 million (US$21 million) increase to its August 2029 Kangaroo bond, via Daiwa Capital Markets on 10 May. The forthcoming deal is being marketed at 52 basis points area over semi-quarterly swap and is expected to price on the day of launch.
On 10 May, NWB Bank (AAA/Aaa) launched a minimum A$15 million (US$10.5 million) tap of its existing May 2029 Kangaroo bond. The forthcoming transaction has indicative price guidance of 55 basis points area over semi-quarterly swap. The transaction is expected to price on the day of launch, according to sole lead manager Daiwa Capital Markets.
The Australian asset-management industry continues to grow but it has yet to produce a consistently diverse local credit market. Allocations to income-generating product will likely increase over time, though market dynamics suggest the most liquid and highest yielding ends of the market may have the healthiest prospects.
On 10 May, Vector (BBB/Baa1) revealed an indicative margin of 165-175 basis points over mid-swap for its forthcoming NZ$200-250 million (US$131.9-164.9 million) six-year deal. The transaction is due to open on 13 May, with the final margin and interest rate to be set on 16 May. ANZ, Deutsche Craigs, Forsyth Barr and Westpac Banking Corporation New Zealand Branch are joint lead managers.
On 9 May, expected ratings were assigned by S&P Global Ratings and Moody's Investors Service to AMP Bank's residential mortgage-backed securities (RMBS) deal, Progress 2019-1 Trust. The deal has indicative total volume of A$750 million (US$523.1 million). ANZ, Commonwealth Bank of Australia, Deutsche Bank, MUFG Securities and National Australia Bank were mandated for the deal on 3 May.
On 9 May, NWB Bank (NWB) (AAA/Aaa) launched a minimum A$15 million (US$10.5 million) increase to its May 2029 Kangaroo bond. The initial price guidance is 54 basis points area over semi-quarterly swap, equivalent to 66.75 basis points area over Australian Commonwealth government bond. Nomura is the sole lead manager.