News
On 29 October, Moody's Investors Service and S&P Global Ratings assigned expected ratings to La Trobe Financial's potential residential mortgage-backed securities (RMBS) transaction, La Trobe Financial Capital Markets Trust 2018-2.
On 29 October, Bank of Queensland (BOQ) launched its asset-backed securities (ABS) transaction, REDS EHP 2018-1. The forthcoming deal has indicative total volume of A$500 million (US$354.7 million) with the ability to upsize. Pricing is expected on or before 2 November.
On 29 October, New South Wales Treasury Corportion (TCorp) (AAA/Aaa) revealed plans for a series of fixed-income investor meetings to be held commencing 31 October ahead of a potential debut Australian dollar green bond. National Australia Bank is structuring arranger and joint bookrunner alongside ANZ and Bank of America Merrill Lynch.
On 29 October, Kiwi Property Group (Kiwi Property) (BBB by S&P) launched a NZ$100-125 million (US$65.2-81.6 million) seven-year bond offer to institutional and New Zealand retail investors. Indicative price guidance for the forthcoming deal is 145-155 basis points over mid swap. The bonds are expected to be rated BBB+.
In the final full week of October, Treasury Corporation of Victoria priced a A$2 billion (US$1.4 billion) three-year deal, the first syndicated semi-government deal at the tenor since February 2017. Meanwhile, The Export-Import Bank of Korea's A$500 million five-year deal was the second Korean-origin Kangaroo deal for the month.
The Export-Import Bank of Korea (Kexim)’s A$500 million, five-year floating-rate note deal ratcheted pricing for Korea-based public issuers closer to that of Australian major-bank benchmarks. Deal sources say issuer, tenor and product scarcity were contributing factors, as well as improving investor confidence in Korean credit.
In the wake of its October debut in the Australian dollar market, Sally Ding, director, treasury and corporate finance at Heathrow Airport (Heathrow) in London, shares some honest insights about the deal execution experience in Australia relative to other global markets.
In October, Sydney Airport issued in the US private placement (USPP) market for the first time since 2014. According to Michael Momdjian, the airport’s treasurer, the deal received a blowout response with globally competitive pricing, ample Australian dollar demand and a big enough book to support a multiple-times oversubscription at final volume.
On 25 October, AMP revealed plans for a potential Australian dollar denominated, 10-year non-call five-year subordinated notes transaction. Investor meetings regarding the possible deal will be held in Asia and Australia, commencing 30 October. ANZ, Commonwealth Bank of Australia, National Australia Bank and UBS are joint lead managers.
Treasury Corporation of Victoria (TCV)’s new three-year transaction was driven by liquidity management needs as the Victorian government continues to implement its working-capital efficiency project. With little issuance from the semi-government sector in this part of the curve, TCV says it was positively surprised by the diversity of investors and demand it uncovered.
