News
International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$50 million (US$35.9 million) tap of its June 2029 Kangaroo bond on 15 April. The forthcoming transaction has indicative price guidance of 42 basis points area over semi-quarterly swap, equivalent to 55.5 basis points area of Australian Commonwealth government bond and is expected to price on the day of launch. Nomura has been mandated as lead manager.
On 15 April, Bank of Queensland (BOQ) (BBB+/A3/A-) launched its benchmark three-year domestic floating-rate note (FRN) transaction. The forthcoming deal is being marketed in the area of 92 basis points over three-month bank bills and is expected to price on the day after launch. ANZ, National Australia Bank and Westpac Institutional Bank are joint bookrunners.
On 15 April, Resimac launched its capped NZ$250 million (US$169.3 million) residential mortgage-backed securities (RMBS) transaction, Versailles Trust Series 2019-1. The forthcoming deal is being arranged by BNZ and Westpac New Zealand, which are also joint lead managers with Merrill Lynch. Pricing is expected on the day after launch.
On 15 April, Downer Group Finance (Downer) (BBB by Fitch) launched a new, seven-year, minimum A$200 million (US$143.4 million) domestic transaction. The forthcoming deal has indicative price guidance of 195-200 basis points area over semi-quarterly swap. Pricing is expected on or before 16 April, according to joint lead managers Mizuho Securities, National Australia Bank and Westpac Institutional Bank.
On 15 April, Bank of Queensland (BOQ) (BBB+/A3/A-) began taking indications of interest for a new, three-year domestic floating-rate note (FRN) transaction, with indicative price guidance of 92 basis points area over three-month bank bills. The deal is expected to launch in the near future, according to joint bookrunners ANZ, National Australia Bank and Westpac Institutional Bank.
During the second week of April, Woolworths Group became the first supermarket globally to price a green bond, with its A$400 million (US$285.2 million) five-year deal. Inter-American Development Bank was active in the social-bond space, printing a A$500 million five-year 'EYE' bond and in securitisation, Pepper Group and La Trobe Financial each printed A$750 million deals.
The Australian Business Securitisation Fund (ABSF) passed both houses of parliament on 3 April and received royal assent on 5 April. The initiative – which directs the Australian Office of Financial Management (AOFM) to increase the availability of finance to SMEs – now enters the final stages of planning before becoming operational on 1 July 2019.
Edith Cowan University (ECU)’s debut bond deal marks a shift in the landscape for universities that have until now been largely reliant on treasury corporations for funding. Diversification and establishing a presence in capital markets was ECU’s focus as it positions for commercial development, and deal sources say investor demand bodes well for ECU’s future capital-markets strategy.