News
On 11 January, Macquarie Bank began taking indications of interest regarding the refinancing of the Class A-R notes from its residential mortgage-backed securities (RMBS) transaction, PUMA Series 2014-1.
Two of Australia’s major banks are underway with their funding for calendar 2019, with one domestic and one offshore transaction printed. The issuers say ongoing market volatility remains front of mind as they enter the new year, and was factored into their market choices – but at this stage it is not expected to affect their broader funding strategy.
Proposed new capital-ratio requirements for New Zealand’s banking sector are causing frustration in the local debt market as participants grapple with a raft of potential consequences. While financial institutions have grown accustomed to increases in capital requirements in the post-financial crisis era, market participants say the wider implications of such a significant shift are largely unknown.
On 9 January, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$200 million (US$143.1 million) increase to its Kangaroo social bond due March 2023. The forthcoming deal has indicative price guidance of 40 basis points area over semi-quarterly swap, equivalent to 58.5 basis points area over Australian Commonwealth government bond.
On 8 January, Stockland Trust Management (Stockland) (A-/A3) announced a consent solicitation process on its A$150 million (US$106.9 million) September 2019, A$160 million November 2020 and A$250 million November 2022 notes. The issuer is proposing amendments to the terms and conditions of the notes, such that they align with its senior-unsecured bank debt facilities and global senior-unsecured funding.
On 8 January, Commonwealth Bank of Australia (CommBank) (AA-/Aa3/AA-) launched a new, self-led five-year domestic deal. The forthcoming transaction will come in either or both fixed- and floating-rate format and has indicative price guidance of 113 basis points area over swap benchmarks. Pricing is expected on the day of launch.
On 7 January, Inter-American Development Bank (IADB) (AAA/Aaa) launched a minimum A$25 million (US$17.8 million) increase to its June 2029 Kangaroo bond. The forthcoming deal has indicative price guidance of 40 basis points area over semi-quarterly swap, equivalent to 53.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager J.P. Morgan.