News
BNG Bank (AAA/Aaa/AA+) launched a minimum A$20 million (US$14.2 million) increase to its April 2029 Kangaroo bond on 24 October. Indicative price guidance is 52 basis points area over semi-quarterly swap, equivalent to 60.5 basis points area over Australian Commonwealth government bond, with pricing expected on the day of launch. Nomura and RBC Capital Markets are leading.
On 24 October, Suncorp-Metway (Suncorp) (A+/A1/A+) launched a minimum A$250 million (US$177.1 million) increase to its August 2022 floating-rate note (FRN). The forthcoming deal is being marketed in the area of 90 basis points over three-month bank bills. Pricing is expected on the day of launch, according to lead managers ANZ, RBC Capital Markets and Westpac Institutional Bank.
On 24 October, Bank of Queensland (BOQ) began taking indications of interest for its asset-backed securities (ABS) transaction, REDS EHP 2018-1.
Australian regulators and global industry participants have warned market users not to delay preparations for sweeping changes to international hedging markets. Meanwhile, although Australia’s bank-bill swap rate (BBSW) has survived the cull of global interbank offered rates (IBORs), local regulators are now intensifying their suggestion that one-month BBSW may no longer be suitable as a reference rate for new issuance.
On 23 October, Kiwi Property Group (Kiwi Property) (BBB+ by S&P) revealed plans for a possible seven-year domestic bond offer for institutional and New Zealand retail investors. The offer is expected to open in the week commencing 29 October. ANZ, Deutsche Craigs and Westpac Banking Corporation New Zealand Branch are joint lead managers.
On 22 October, Think Tank Group (Think Tank) mandated Commonwealth Bank of Australia, Deutsche Bank and Westpac Institutional Bank to arrange investor meetings in Australia regarding a potential SME commercial mortgage-backed securities (CMBS) transaction. The meetings will commence in the week beginning 29 October.
Treasury Corporation of Victoria (TCV) (AAA/Aaa) launched a new, benchmark three-year bond transaction by syndication on 22 October. The forthcoming deal is being marketed at 19.5-21.5 basis points area over EFP, equivalent to 20.75-22.75 basis points area over Australian Commonwealth government bond.
On 22 October, Export-Import Bank of Korea (Kexim) (AA/Aa2/AA-) launched a new, five-year Kangaroo bond transaction to come in either or both fixed- and floating-rate format. The forthcoming deal has indicative price guidance of 98 basis points area over swap benchmarks. Pricing is expected on the day after launch, according to lead managers ANZ, Mizuho Securities and TD Securities.
The third week of October saw Banque Fédérative du Crédit Mutuel price a debut A$200 million (US$141.9 million) senior-preferred Kangaroo deal, as well as new 2023 and 2029 lines priced by CAF - Development Bank of Latin America and BNG Bank respectively. In securitisation, Firstmac priced an upsized A$1 billion residential mortgage-backed securities deal.