News
The first full week of August saw Commonwealth Bank of Australia print a A$3.5 billion (US$2.6 billion) multi-tranche three- and five-year transaction. In asset- and residential-mortgage backed securities, four deals printed across Australia and New Zealand. Meanwhile, Bank Australia and Macquarie University revealed plans for sustainability bonds and World Bank mandated a world-first blockchain bond in Kangaroo format.
On 10 August, Macquarie University (Aa2) mandated HSBC and National Australia Bank to arrange fixed-income investor meetings regarding a potential Australian dollar denominated sustainability bond. The meetings will take place in Asia and Australia, commencing 16 August.
On 10 August, Commonwealth Bank of Australia (CommBank) launched its multi-tranche, three- and five-year domestic transaction. Indicative priced guidance for the three-year maturity is 75 basis points area over swap benchmarks, while the five-year maturity is being marketed at 95 basis points area over swap benchmarks. The self-led deal is expected to price on the day of launch.
On 10 August, World Bank (AAA/Aaa) mandated Commonwealth Bank of Australia (CommBank) to arrange the first-ever blockchain bond. According to a World Bank press release, the bond will be “created, allocated, transferred and managed through its lifecycle using distributed ledger technology”.
On 10 August, Suncorp Group (Suncorp) (A/A2/A+) revealed plans to meet investors regarding a possible 10.25-year non-call 5.25-year wholesale subordinated-notes transaction. Meetings will take place across Australia, New Zealand and Asia, commencing 15 August.
Late in the Sydney day on 9 August, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched a minimum A$150 million (US$110.7 million) tap of its August 2020 Kangaroo bond, via Deutsche Bank and TD Securities. Indicative price guidance for the deal, expected to price 10 August, is 25 basis points area over semi-quarterly swap, equivalent to 31.25 basis points area over Australian Commonwealth government bond.
Late in the Sydney day on 9 August, NRW.BANK (AAA/Aa1/AA-) launched a minimum A$20 million (US$14.7 million) increase to its May 2028 Kangaroo bond. The forthcoming deal is being marketed at 65 basis points area over semi-quarterly swap and 72 basis points area over Australian Commonwealth government bond. Pricing is expected on 10 August according to lead managers Nomura and RBC Capital Markets.