News
On 10 October, Queensland Treasury Corporation (QTC) (AA+/Aa1) launched a new, August 2029 benchmark bond by syndication. The forthcoming deal has indicative price guidance of 58-61 basis points over the 10-year futures contract and 59-62 basis points area over Australian Commonwealth government bond.
On 9 October, Bank of Queensland (BOQ) mandated ANZ, Macquarie Bank, National Australia Bank and Westpac Institutional Bank to engage with investors regarding its REDS EHP asset-backed securities (ABS) programme. An Australian dollar denominated transaction from the programme may follow the meetings, which are due to commence during the week of 22 October.
On 9 October, Bendigo and Adelaide Bank (BEN) (BBB+/A3/A-) launched its benchmark, Australian dollar denominated 3.25-year floating-rate note (FRN) transaction. The forthcoming deal has 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 ANZ, National Australia Bank and Nomura.
Port of Melbourne priced the Australian market’s largest single-tranche volume for a nonfinancial corporate borrower in 2018 with its A$550 million (US$388.5 million) seven-year debut on 4 October. But establishing a significant investor base in the local market was the issuer’s main goal rather than outright volume, deal sources say.
On 8 October, Credit Union Australia (CUA) launched its residential mortgage-backed securities (RMBS) transaction, CUA Series 2018-1 Harvey Trust (Harvey 2018-1). The forthcoming deal has indicative total volume of A$500 million (US$353 million) with the ability to upsize. Pricing is expected on 12 October.
Pepper Group (Pepper) introduced US dollars to its I-Prime residential mortgage-backed securities (RMBS) programme with its latest transaction, I-Prime 2018-2. The issuer tells KangaNews the move is designed to continue to diversify its investor base, given the scale of its funding need.
On 8 August, Bendigo and Adelaide Bank (BEN) (BBB+/A3/A-) mandated ANZ, National Australia Bank and Nomura as joint bookrunners for a benchmark, Australian dollar denominated, 3.25-year floating-rate note (FRN) transaction. The deal is expected to launch and price in the near future.
The Kauri market has been supporting significantly sized deals in recent weeks, illustrated by Asian Development Bank (ADB)’s most recent foray into the market. Pricing and demand fundamentals are currently coaxing supply from offshore issuers, with domestic buyers the primary drivers of demand.
The Australian market saw its largest single-tranche nonfinancial corporate deal of 2018 during the first week of October, with Port of Melbourne's A$550 million (US$388.5 million) seven-year deal. Meanwhile in New Zealand, the Kauri market continues to attract deals, with Asian Development Bank pricing a NZ$400 million (US$259.1 million) increase to its 2021 Kauri line.
On 5 October, Metro Finance revealed plans to meet investors in Sydney, Melbourne and Brisbane commencing 23 October, ahead of a potential auto asset-backed securities (ABS) transaction.