News
In 2017, KangaNews and Mizuho Securities hosted their first-ever roundtable discussion in Tokyo for Japanese investors in Australian dollar debt. A year later, a larger group of buy-side participants explain that, while the headwinds facing international participants in the Australian market are real, they are if anything engaged with a wider range of product than ever before.
Suncorp Group (Suncorp) (A/A2/A+) launched its Australian dollar denominated, 10.25-year non-call 5.25-year, wholesale subordinated-notes transaction on 29 August. Indicative price guidance for the forthcoming deal is 220-225 basis points area over three-month bank bills. The notes are expected to be rated BBB+/A-.
On 29 August, Bank of Nova Scotia Australia Branch (BNS Australia) (A+/Aa2/AA-) revealed indicative price guidance for its potential three- and five-year domestic deal at 78 basis points area and 100 basis points area over swap benchmarks respectively. The transaction is expected to launch and price in the near future, according to lead managers ANZ, Nomura, Scotiabank and Westpac Institutional Bank.
On 29 August, Spark Finance (Spark) (A- by S&P) launched its NZ$100-125 million (US$67.1-83.8 million) 5.5-year domestic deal, which is being offered to institutional and New Zealand retail investors. Indicative price guidance for the forthcoming deal is 100-110 basis points over mid swap, with the rate expected to be set on 31 August following a bookbuild.
On 28 August, Bank of Nova Scotia Australia Branch (BNS Australia) (A+/Aa2/AA-) mandated a senior-unsecured benchmark domestic deal in either or both of three- and five-year maturities. ANZ, Nomura, Scotiabank and Westpac Institutional Bank will lead the forthcoming deal.
On 28 August, RedZed Lending Solutions (RedZed) mandated Commonwealth Bank of Australia and National Australia Bank to arrange a series of investor meetings regarding a potential nonconforming residential mortgage-backed securities (RMBS) transaction.
On 28 August, Blustone Group (Bluestone) launched its residential mortgage-backed securities (RMBS) transaction, Sapphire XIX 2018-2. The forthcoming deal has indicative total volume of A$300 million (US$220.1 million) and is expected to price on or before 30 August.
On 28 August, Optus Finance (Optus) (A2 by Moody’s), the wholly owned subsidiary of Singtel Optus (A by S&P), mandated ANZ and Westpac Institutional Bank for a potential five-year Australian dollar denominated domestic transaction.
On 28 August, Macquarie University (Aa2) mandated HSBC and National Australia Bank for a potential 10-year Australian dollar denominated sustainability bond. Initial price talk for the transaction is 95-100 basis points area over semi-quarterly swap. The deal is expected to launch in the near future.