News
The Australian Sustainable Finance Initiative (ASFI) aims to “set out a roadmap for realigning the finance sector to support greater social, environmental and economic outcomes”. Following its launch at the end of March, KangaNews spoke to seven member institutions of the ASFI steering committee about the initiative’s goals and how they will be measured.
Citibank (A+/Aa3/A+) launched a new, three-year, senior-unsecured benchmark global Australian dollar deal, to come in either or both fixed- and floating-rate formats, on 9 May. Indicative price guidance for the forthcoming transaction is 75 basis points area over swap benchmarks. The deal is expected to price on the day after launch, according to joint bookrunners ANZ, Commonwealth Bank of Australia, Citi, National Australia Bank and Westpac Institutional Bank.
On 9 May, National Australia Bank (NAB) (AA-/Aa3/AA-) launched a self-led 10-year non-call five-year, tier-two domestic transaction. The forthcoming deal will come in either or both fixed- and floating-rate formats and has indicative price guidance of 215-225 basis points area over swap benchmarks. The deal is expected to be rated BBB/Baa1/A+ and to price on the day of launch.
On 8 May, Mortgage House began taking indications of interest for its inaugural residential mortgage-backed securities (RMBS) deal, Mortgage House RMBS Series 2019-1 (Mortgage House 2019-1). The deal is capped at A$300 million (US$210.7 million) and is being led by National Australia Bank and Westpac Institutional Bank.
Northern Territory Treasury Corporation (NTTC) has revealed an estimated borrowing programme for the 2019/20 financial year of A$1.1 billion (US$771.4 million). The requirement is a step down from NTTC’s A$1.75 billion requirement in the 2018/19 financial year, reflecting a lower level of maturing debt, but remains elevated compared with historical funding requirements.
On 8 May, Pepper Group (Pepper) began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Pepper PRS 24. The deal is capped at A$750 million (US$526.8 million) equivalent, with the euro denominated tranche backed exclusively by green mortgages. Commonwealth Bank of Australia, Citi, Natixis, National Australia Bank, Societe Generale and Westpac Institutional Bank are joint lead managers.
CAF – Development Bank of Latin America (CAF) is about to celebrate its 50th anniversary. Gabriel Felpeto, chief financial officer at CAF in Bogotá, reflects on the supranational’s evolution as a lender, recaps its emergence as Australia’s first Latin American issuer, and discusses the development of green and social bonds. CAF has been active in the Kangaroo market since 2013, and now has more than A$1.3 billion (US$930.3 million) on issue (see chart).
On 8 May, Citi (A+/Aa3/A+) revealed plans for a three-year, senior-unsecured Australian dollar denominated transaction. ANZ, Commonwealth Bank of Australia, Citi, National Australia Bank and Westpac Institutional Bank have been mandated as joint lead managers for the deal, expected to launch in the near future.
The domestic housing market has soared as a risk factor in the minds of Australian fixed-income investors according to the latest Fitch Ratings (Fitch)-KangaNews Australian Fixed Income Investor Survey. A deeper look at the data suggests investors believe risk is contained, but the survey as a whole points to expectations of a slowing economy.