News
On 8 November, Bluestone Group (Bluestone) mandated Commonwealth Bank of Australia and Macquarie Bank to arrange investor meetings regarding a potential residential mortgage-backed securities (RMBS) transaction from its Sapphire programme. The meetings will commence in the week beginning 12 November.
On 8 November, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a minimum A$100 million (US$72.7 million) increase to its September 2027 Kangaroo bond. The forthcoming deal has indicative price guidance of 40 basis points area over semi-quarterly swap, equivalent to 46.4 basis points area over Australian Commonwealth government bond.
Australia’s big-four banks could triple their issuance of tier-two instruments to meet the local equivalent of a total loss-absorbing capacity (TLAC) regime, according to the Australian Prudential Regulation Authority (APRA). The Australian regulator proposed an updated capital-adequacy regime on 8 November, suggesting tier-two will carry most of the weight of a 4-5 per cent increase in total capital requirement for the majors.
On 8 November, Westpac Banking Corporation (Westpac) (AA-/Aa3/AA-) revealed plans for a potential self-led, benchmark three- and five-year domestic transaction.
On 8 November, Agricultural Bank of China Sydney Branch (A/A1) revealed plans to engage investors in Australia for a potential inaugural Australian dollar denominated senior-unsecured transaction. Investor meetings will begin on 13 November, and will be arranged by ANZ, Commonwealth Bank of Australia, HSBC and National Australia Bank.
On 8 November, AMP (A by S&P) launched an indicative A$200 million (US$145.5 million), 10-year non-call five-year subordinated notes transaction. The deal is expected to be rated BBB+ and is being marketed at 275-300 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to lead managers ANZ, Commonwealth Bank of Australia, National Australia Bank and UBS.
On 8 November, Telstra Corporation (Telstra) (A-/A2) mandated National Australia Bank and Westpac Institutional Bank for an Australian dollar denominated, one-year floating-rate note (FRN) transaction, with indicative price guidance of 60 basis points area over three-month bank bills. The lead managers are exploring expressions of interest and the offer may close at short notice.
Bank of China Sydney Branch (BoC Sydney) (A/A1/A) launched its benchmark, three-year domestic floating-rate note (FRN) transaction on 8 November, with indicative price guidance of 103 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to lead managers Bank of China, Commonwealth Bank of Australia, National Australia Bank and Nomura.
On 8 November, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) launched a minimum A$500 million (US$364 million) green-bond transaction by syndication, due November 2028. Indicative price guidance for the forthcoming deal is 44-46 basis points over Australian Commonwealth government bond. Pricing is expected on or before 9 November, according to lead managers ANZ, Bank of America Merrill Lynch and National Australia Bank.
On 7 November, Resimac began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Resimac Premier Series 2018-2. The potential deal has indicative total volume of A$750 million (US$545.1 million).
Bank of China Sydney Branch (BoC Sydney) (A/A1/A) mandated a three-year domestic floating-rate note (FRN) transaction on 7 November, with initial price guidance of 103 basis points area over bank bills. Bank of China, Commonwealth Bank of Australia, National Australia Bank and Nomura are leading.