News
On 6 August, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$50 million (US$37 million) increase to its June 2029 Kangaroo bond. The forthcoming deal is being marketed at 41 basis points area over semi-quarterly swap, equivalent to 54 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager TD Securities.
The end of July and early August brought more activity in the asset-backed securities (ABS) space. ME Bank printed A$1.25 billion (US$921.5 million) in its residential mortgage-backed securities deal, SMHL 2018-2, Resimac started marketing its Bastille 2018-1 transaction, and CNH Industrial Capital Australia and FlexiGroup New Zealand began taking indications of interest for their respective ABS deals.
On 3 August, Dexus Finance (Dexus) (A-/A3) launched a minimum A$30 million (US$22.1 million) 20-year domestic transaction. The forthcoming deal has indicative price guidance of 4.7 per cent area semi-annually. Pricing is expected on the day of launch, according to lead manager SMBC Nikko.
On 3 August, FlexiGroup New Zealand (FlexiGroup NZ) launched its Q Card Trust 2018-1, asset-backed securities (ABS) transaction. The deal has indicative total volume of NZ$150 million (US$101.1 million), including the NZ$58 million refinancing of the Class A notes from its 2014-3 transaction. The Class A notes may be split into multiple series with differing final maturities.
On 2 August, ING Bank Australia (ING Australia) (A/A3/A) revealed plans for an inaugural 3-5 year Australian dollar covered-bond transaction. Investor meetings regarding the potential deal will take place in Asia and Australia, commencing 6 August, and an investor update call will take place on 7 August. The covered bonds are expected to be rated Aaa/AAA.
Resimac began taking indications of interest for its potential residential mortgage-backed securities (RMBS) transaction, Bastille Trust 2018-1 (Bastille 2018-1), on August 2. The deal is expected to launch and price during the week commencing 6 August.
On 2 August, Mercedes-Benz Australia (Mercedes-Benz) (A/A2/A-) mandated ANZ and TD Securities for a new, Australian dollar denominated, three-year EMTN transaction.
On 2 August, CNH Industrial Capital Australia (CNH Capital) began taking indications of interest for its asset-backed securities (ABS) transaction, CNH Series 2018-1.
On 2 August, Quartz Finance, an entity owned by Blackstone Group, launched a conditional purchase offer for up to A$150 million (US$111.1 million) of Investa Office Fund (IOF)’s green-bond line due April 2024. The purchase price under the offer will be 100 per cent plus 1.782 per cent for accrued interest up to and including the proposed implementation date, 5 September.