News
On 7 November, Think Tank Group (Think Tank) started taking indications of interest for a new SME commercial mortgage-backed securities (CMBS) transaction, Think Tank Series 2018-1.
On 7 November, in the wake of investor meetings held in Asia and Australia, AMP revealed price guidance of 275-300 basis points area over three-month bank bills for a potential Australian dollar denominated, 10-year non-call five-year subordinated notes transaction.
Fonterra Co-operative Group (Fonterra) (A-/A) launched a maximum NZ$150 million (US$100 million) seven-year domestic deal on 6 November. The forthcoming deal, which is being offered to institutional and New Zealand retail investors under same-class exemption rules, has an indicative margin of 1.25-1.35 per cent. The margin and interest rate will be set on 8 November following a bookbuild.
On 5 November, La Trobe Financial started taking indications of interest on its new residential mortgage-backed securities (RMBS) transaction, La Trobe Financial Capital Markets Trust 2018-2. Launch is expected during the week of 12 November.
On 5 November, Chorus and Fonterra Co-operative Group (Fonterra) revealed plans for domestic deals to be offered to institutional and retail investors under same-class exemption rules.
Lendlease Group priced a A$500 million (US$362 million) dual-tranche transaction in the first days of November, the highlight of an otherwise relatively subdued week for primary issuance in the Australian market. Meanwhile in securitisation, Bank of Queensland printed a A$1 billion asset-backed securities transaction.
Commonwealth Bank of Australia (CommBank) launched its second additional tier-one (AT1) hybrid transaction of 2018 on November 1. Unlike its deal in March, which was focused on new money, the issuer says the priority for PERLS XI is to roll investors from its December AT1 call into this transaction. The bank expects strong demand on this basis.
On 2 November, Oxford Property Group (Oxford Property) launched a conditional offer for up to A$150 million (US$108.2 million) of Investa Office Fund (IOF) notes, due April 2024. The purchase price under the offer will be 100 per cent plus accrued interest up to and including the purchase date, expected in December 2018. ANZ is sole facilitator for the offer.
Leading supranational, sovereign and agency (SSA) issuers have shared insights into the changing shape of their sector, with a focus on benchmark reform, the issuance-currency mix and evolution in sustainable debt markets. Kangaroo issuance faces some headwinds at present but SSAs see no reason why the market cannot rebound in 2019.
On 2 November, Lendlease Group (Lendlease) (Baa3/BBB-) launched a new, dual-tranche, benchmark Australian dollar denominated deal. Indicative price guidance for the 5.5-year tranche is 200 basis points area over semi-quarterly swap, while the 10-year tranche is being marketed at 250 basis points area over semi-quarterly swap.