News
On 12 November, La Trobe Financial launched its new residential mortgage-backed securities (RMBS) transaction, La Trobe Financial Capital Markets Trust 2018-2. The deal is capped at A$750 million (US$541.7 million). National Australia Bank is arranger for the transaction, and joint lead manager alongside HSBC, Macquarie Bank, Natixis, United Overseas Bank and Westpac Institutional Bank.
On 12 November, Christchurch City Holdings (Christchurch City) revealed plans for a potential six-year domestic bond offer to institutional and New Zealand retail investors. Westpac Banking Corporation New Zealand Branch has been mandated to arrange the deal, and lead alongside ANZ. The offer is expected to open on or around 19 November.
On 12 November, Westpac Banking Corporation (Westpac) launched its additional tier-one (AT1) notes offer, Westpac Capital Notes 6. The forthcoming deal is expected to raise A$750 million (US$541.5 million), with the ability to take more or less. The transaction is being marketed at 370-390 basis points over three-month bank bills, with the final margin to be determined at the completion of a bookbuild, expected 19 November.
On 12 November, Bank of New Zealand (BNZ) (AA-/A1) launched a new, five-year domestic deal with indicative price guidance of 100-105 basis points over mid swap. The self-led deal is expected to price on 14 November.
South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a maximum A$1 billion (US$722 million) syndicated increase to its May 2028 select line on 12 November. The forthcoming deal has indicative price guidance of 48-50 basis points over the 10-year futures contract, equivalent to 49.25-51.25 basis points over Australian Commonwealth government bond.
On 12 November, Toyota Finance Australia (Toyota Australia) (AA-/Aa3) mandated ANZ, Citi and Commonwealth Bank of Australia for a potential benchmark Australian dollar denominated transaction, to come in either or both three- and five-year maturities.
On 12 November, J.P. Morgan Chase & Co. (J.P. Morgan Chase) (A-/A2/AA-) launched a new, multi-tranche callable transaction. The forthcoming deal consists of six-year non-call five-year tranches, to come in either or both of floating-to-floating-rate and fixed-to-floating-rate formats, with indicative price guidance of 113 basis points area over swap benchmarks. There will also be a 10.5-year non-call 9.5-year fixed-to-floating-rate note tranche being marketed at 145-150 basis points area over semi-quarterly swap.
The first full week of November was highlighted by the Australian market's largest-ever green-bond transaction, New South Wales Treasury Corporation's A$1.8 billion (US$1.3 billion) 10-year syndicated deal. Meanwhile, Commonwealth Bank of Australia completed the bookbuild for its PERLS XI additional tier-one deal, upsizing to A$1.25 billion from A$750 million at launch.
On 9 November, Commonwealth Bank of Australia (CommBank) revealed a final margin of 370 basis points over three-month bank bills for its additional tier-one (AT1) capital transaction, PERLS XI – the tight end of a 20 basis point marketing range. Following the completion of a bookbuild, CommBank increased transaction volume to A$1.25 billion (US$905.6 million) from launch volume of A$750 million. Final volume will be revealed when the deal settles, expected 17 December.