News
On 13 March, ConnectEast Finance (ConnectEast) (Baa2) began taking indications of interest for a new, seven-year Australian dollar denominated benchmark domestic deal, with initial price guidance in the area of 160 basis points over semi-quarterly swap. Commonwealth Bank of Australia and National Australia Bank are joint lead managers for the deal, expected to launch in the near future.
On 13 March, La Trobe Financial revealed plans to meet investors regarding a potential Australian dollar denominated residential mortgage-backed securities (RMBS) transaction. Commonwealth Bank of Australia, HSBC, Macquarie Bank, National Australia Bank, Natixis and United Overseas Bank have been mandated to arrange the meetings, which will take place in Asia in the week beginning 22 March and in Australia in the week beginning 1 April.
Incitec Pivot priced its first Australian dollar deal in more than five years on 8 March. The issuer cites the increased availability of seven-year debt as a key factor in its return while deal sources say the rarity of the credit led to significant demand for the transaction.
Kommunalbanken Norway (KBN) (AAA/Aaa) launched an indicative A$25 million (US$17.6 million) increase to its July 2028 Kangaroo bond on 13 March. The forthcoming deal has price guidance of 53 basis points area over semi-quarterly swap and is expected to price on the day of launch. Daiwa Capital Markets is leading.
On 13 March, S&P Global Ratings assigned preliminary ratings for eight classes of Australian Financial Group (AFG)’s potential residential mortgage-backed securities (RMBS) transaction, AFG 2019-1 Trust. Fitch Ratings assigned its expected ratings to the Class A1 and Class A2 notes of the deal on the same day. The transaction has indicative total volume of A$350 million (US$246.8 million).
On 13 March, Mercedes-Benz Australia Pacific (Mercedes-Benz) (A/A2/A-) launched a new, indicative A$100 million (US$70.5 million) three-year EMTN transaction. The forthcoming deal is being marketed at 90 basis points area over semi-quarterly swap and is expected to price on the day of launch during London hours.
On 13 March, Stockland Trust Management (Stockland) (A-/A3) launched a new, five-year, Australian dollar denominated benchmark transaction. The forthcoming deal has indicative price guidance of 160 basis points area over semi-quarterly swap and is expected to price on or before the day after launch. ANZ, HSBC and Westpac Institutional Bank are joint lead managers.