News
On 20 March, Insurance Australia Group (IAG) (A by S&P) launched a 26.25-year non-call 6.25-7.25-year tier-two domestic transaction with price guidance of 240-245 basis points area over bank bills. The forthcoming deal is expected to be rated BBB and to price the day after launch, via National Australia Bank and Westpac Institutional Bank.
National Housing Finance and Investment Corporation (NHFIC) (AAA by S&P) launched its inaugural social bond on 20 March. The 10-year deal has indicative volume of A$250-300 million (US$175.3-210.5 million) and price guidance of 50-55 basis points over the implied yield on the 10-year Australian Commonwealth government bond futures contract. The deal is expected to price the day after launch via ANZ and UBS.
On 19 March, FlexiGroup launched its capped A$300 million (US$213.2 million) asset-backed securities (ABS) transaction, Flexi ABS Trust 2019-1 (Flexi 2019-1). The forthcoming deal is expected to price on or before 22 March, according to Commonwealth Bank of Australia, which is arranger and lead manager alongside National Australia Bank.
On 19 March, Columbus Capital (Columbus) began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Triton 2019-2. The deal has the potential to be upsized to A$750 million (US$532.7 million). National Australia Bank, SMBC Nikko, Standard Chartered and Westpac Institutional Bank were mandated for the deal on 18 March.
On 19 March, Treasury Corporation of Victoria (TCV) (AAA/Aaa) launched a new, Australian dollar denominated benchmark October 2029 syndicated deal. The forthcoming transaction is being marketed at 54-57 basis points area over the 10-year futures contract, equivalent to 53-56 basis points area over Australian Commonwealth government bond. Pricing is expected on or before the day after launch, according to lead managers Commonwealth Bank of Australia, Deutsche Bank, UBS and Westpac Institutional Bank.
On 18 March, Bluestone Group (Bluestone) mandated Commonwealth Bank of Australia, Deutsche Bank, Macquarie Bank and National Australia Bank to engage investors for a potential Australian dollar denominated residential mortgage-backed securities (RMBS) transaction from its Sapphire programme.
On 18 March, MUFG Bank Auckland Branch (MUFG Auckland) (A/A1/A) revealed plans for a potential inaugural New Zealand dollar denominated, three-year floating-rate note transaction. ANZ, BNZ, MUFG Securities and Morgan Stanley have been mandated as joint lead managers for the possible deal, which may launch as early as the week beginning 25 March.
EUROFIMA (AA+/Aa2) mandated Nomura to lead manage an indicative A$25 million (US$17.7 million) increase of its May 2029 Kangaroo bond on 18 March. The forthcoming deal is being marketed at 62 basis points area over semi-quarterly swap, equivalent to 74.55 basis points area over Australian Commonwealth government bond. Pricing is expected on 19 March.
On 18 March, Columbus Capital (Columbus) revealed plans to engage investors regarding a potential Australian dollar denominated residential mortgage-backed securities (RMBS) transaction from its Triton programme. National Australia Bank, SMBC Nikko, Standard Chartered and Westpac Institutional Bank have been mandated to arrange meetings.
On 18 March, Wellington International Airport (Wellington Airport) (BBB+ by S&P) launched a NZ$75-100 million (US$51.3-68.4 million) resetting 11-year senior-unsecured domestic deal. The forthcoming transaction has an indicative margin of 195-205 basis points over mid swap, with the final margin and interest rate to be set following a bookbuild, expected 22 March. ANZ, Deutsche Craigs and Forsyth Barr are joint lead managers.
New Zealand Local Government Funding Agency (LGFA) undertook its first-ever syndicated transaction on 12 March. The deal represents a change in strategy for the borrower, which deal sources say allows it better to engage domestic and offshore investors seeking larger allocations – an outcome that was evident in the record volume achieved.