News
On 2 October, Pepper Group (Pepper) launched its residential mortgage-backed securities (RMBS) transaction, Pepper I-Prime 2018-2 Trust (I-Prime 2018-2). The forthcoming deal has indicative total volume of A$600 million (US$433.6 million) equivalent and will not grow. Pricing is expected on or before 5 October.
On 2 October, Heathrow Funding (A-/A-), the financing arm of Heathrow Airport, revealed plans for a new, benchmark Australian dollar denominated, 10-year deal, with initial price guidance of 140 basis points area over semi-quarterly swap. The deal is expected to launch and price in the near future.
On 2 October, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a minimum NZ$200 million (US$132 million) increase to its April 2021 Kauri bond. Indicative price guidance for the forthcoming deal is 23 basis points area over mid swap, with pricing expected on the day after launch. ANZ, BNZ and TD Securities are joint lead managers.
Securitisation activity was to the fore in Australia during the last week of September, with Liberty Financial pricing a A$750 million (US$540.1 million) equivalent residential mortgage-backed securities (RMBS) deal, while Credit Union Australia and Pepper Group have RMBS deals in the pipeline. In New Zealand, Auckland International Airport printed a NZ$150 million (US$99.2 million) six-year transaction.
On 27 September, Korea Development Bank (KDB) (AA/Aa2/AA-) mandated ANZ, TD Securities and UBS to arrange fixed-income investor meetings in Singapore, Melbourne and Sydney in the week commencing 1 October, regarding a potential Kangaroo transaction.
On 27 September, Pepper Group (Pepper) began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Pepper I-Prime 2018-2. The deal, which includes the US dollar denominated Class A1-u1 notes, is expected to launch in the week commencing 1 October.
On 27 September, Heathrow Funding (A-/A-), the financing arm of Heathrow Airport, revealed plans for a benchmark 10-year Australian dollar denominated transaction. Having completed a series of fixed-income investor meetings in Australia and Asia, the transaction may come as early as the week commencing 1 October.
Commonwealth Bank of Australia (CommBank)’s residential mortgage-backed securities (RMBS) deal, Medallion Trust Series 2018-1 (Medallion 2018-1), broke new ground in the Australian market with the three-year revolving facility supporting a longer-than-usual weighted-average life (WAL). The issuer insists this innovation adds a valuable tool to the bank’s funding options.
On 26 September, S&P Global Ratings assigned preliminary ratings to Credit Union Australia (CUA)'s proposed residential mortgage-backed securities (RMBS) deal, Series 2018-1 Harvey Trust. Fitch Ratings assigned its expected ratings on the previous day. CUA mandated ANZ, Macquarie Bank, National Australia Bank and Westpac Institutional Bank for the potential transaction on 10 September.