News
On 26 February, Queensland Treasury Corporation (QTC) (AA+/Aa1) launched a new, 10-year syndicated green-bond transaction. The forthcoming deal has indicative price guidance of 57-60 basis points area over the 10-year futures contract and 57-60 basis points area over Australian Commonwealth government bond.
Liberty Financial (Liberty) (BBB- by S&P) launched a minimum A$100 million (US$71.7 million) three-year domestic floating-rate note (FRN) transaction on 26 February. The forthcoming deal is being marketed in the area of 325 basis points over three-month bank bills and is expected to price on the day of launch. National Australia Bank and Westpac Institutional Bank are joint lead managers.
Pepper Group (Pepper) became the first non-EU issuer globally to undertake a securitisation under new European regulations via a new residential mortgage-backed securities (RMBS) deal priced on 22 February. The issuer says extensive work was needed to get to grips with the regulations, which were still being finalised as Pepper marketed the deal.
On 25 February, FlexiGroup mandated Commonwealth Bank of Australia and National Australia Bank to engage investors regarding a potential Australian dollar denominated asset-backed securities (ABS) deal including green tranches. Investor meetings will take place in New Zealand, Sydney and Melbourne commencing 1 March.
On 25 February, Macquarie Bank revealed plans to meet asset-backed securities (ABS) investors in the week commencing 4 March, regarding a potential funding-only transaction under its SMART Auto ABS programme. ANZ, Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank and Westpac Institutional Bank are arranging the meetings.
McDonald’s Corporation (McDonald’s) (BBB+/Baa1) launched a new, multi-tranche benchmark Kangaroo transaction on 25 February. The forthcoming deal will be comprised of five-year tranches in either or both fixed- and floating-rate formats, a 7.5-year fixed-rate tranche and a 10-year tranche. The tranches are being marketed at 115, 140-145 and 160-165 basis points area over swap benchmarks respectively.
On 25 February, Macquarie Group launched a new additional tier-one (AT1) capital transaction for A$500 million (US$357.8 million), with the ability to raise more or less. The forthcoming deal is being marketed at 415-435 basis points over three-month bank bills. The final margin will be announced following a bookbuild on 1 March.
On 25 February, Virgin Australia (Virgin) (B+/B2) launched a new, Australian dollar denominated five-year non-call three-year benchmark transaction. The deal has an indicative coupon in the area of 8.125-8.25% and is expected to price on the day after launch. The deal is expected to be rated B/B3.
On 25 February, Liberty Financial (Liberty) (BBB- by S&P) revealed plans for a new, indicative A$100 million (US$71.5 million) three-year senior-unsecured transaction, with initial price guidance of 325 basis points area over three-month bank bills. National Australia Bank and Westpac Institutional Bank have been mandated as joint lead managers.
On 25 February, Queensland Treasury Corporation (QTC) (AA+/Aa1) revealed plans for a new, Australian dollar denominated 10-year green bond syndicated transaction. National Australia Bank, UBS and Westpac Institutional Bank have been mandated as joint lead managers for the deal, which is expected to launch in the near future.
On 21 February, BNP Paribas priced a dual-tranche senior nonpreferred EMTN, the first Australian dollar deal in this format for 2019. Lead managers say taking a simple, broadly appealing structure to the market was essential in achieving benchmark volume in what can be a challenging format.
World Bank made an emphatic return to Kangaroo mid-curve issuance during the third full week of February, with a A$1.3 billion (US$922 million) deal. In New Zealand, Contact Energy priced the market's first corporate green bond and in offshore Australian dollar issuance, BNP Paribas priced a dual-tranche five-year senior nonpreferred deal.