News
On 10 April, Société Générale (SocGen) (A/A1/A) revealed plans for a new, 15-year non-call 10-year, Australian dollar denominated tier-two EMTN transaction. The deal is expected to launch in the near future, and to be rated BBB/Baa3/A-. ANZ, Nomura, SocGen and TD Securities have been mandated as joint bookrunners.
On 10 April, Volkswagen Financial Services Australia (Volkswagen Australia) (A3/BBB+) launched a benchmark four-year domestic deal with indicative price guidance of 160 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to lead managers Mizuho Securities and TD Securities.
On 10 April, Toyota Finance New Zealand (Toyota New Zealand) (AA-/Aa3) launched an indicative NZ$100 million (US$67.4 million) five-year domestic transaction. The forthcoming deal has an indicative margin of 82-92 basis points area over mid swap, with the final margin to be set on 11 April. ANZ is sole lead manager.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) mandated a minimum A$150 million (US$107.2 million) increase to its February 2025 Kangaroo bond on 9 April. The tap is being marketed at 41 basis points area over semi-quarterly swap, equivalent to 50 basis points area over Australian Commonwealth government bond, via Nomura.
On 9 April, Bank of China Sydney Branch (BoC Sydney) (A/A1/A) revealed plans for a 3.5-year Australian dollar denominated senior floating-rate note transaction, to be led by ANZ, Bank of China, Citi, Commonwealth Bank of Australia and Macquarie Bank.
Australian Finance Group (AFG) priced its largest-ever residential mortgage-backed securities (RMBS) deal on 5 April. The issuer intends to leverage what it believes is a unique product proposition in the Australian market, as a broker and lender, to reach a more diverse investor base as its funding requirement rises.
On 9 April, Pepper Group (Pepper) launched its new residential mortgage-backed securities (RMBS) deal, Pepper I-Prime 2019-1. The forthcoming transaction has capped total volume of A$750 million (US$534.5 million) and includes a US dollar denominated tranche. Pricing is expected on or before 11 April.
On 9 April, La Trobe Financial launched its new residential mortgage-backed securities (RMBS) deal, La Trobe Financial Capital Markets Trust 2019-1. The forthcoming transaction has indicative volume of A$500 million (US$356.3 million) and is expected to price on 11 April. Macquarie Bank is the arranger, as well as joint lead manager alongside Commonwealth Bank of Australia, HSBC, National Australia Bank, Natixis and United Overseas Bank.
On 9 April, Inter-American Development Bank (IADB) (AAA/Aaa) launched a new, five-year, minimum A$250 million (US$178.1 million) Kangaroo ‘EYE’ (education, youth and employment) bond deal. The forthcoming transaction has indicative price guidance of 35 basis points area over semi-quarterly swap, equivalent to 51.5 basis points area over Australian Commonwealth government bond.
Volkswagen Financial Services Australia (Volkswagen Australia) mandated Mizuho Securities and TD Securities as joint lead managers for a potential four-year Australian dollar denominated deal on 9 April. The transaction is expected to launch in the near future.
Until 2019, Bluestone Group (Bluestone)’s transactions were largely designed with Australian and New Zealand investors in mind. However, a move to issue in line with Capital Requirement Directives-IV (CRD-IV) regulation means Bluestone’s first residential mortgage-backed securities (RMBS) deal of the new calendar year garnered record volume and brought with it increased offshore investor recognition and participation, issuer and leads say.