News
The US private placement (USPP) market provided insulation from global volatility as well as the mix of tenors and volume Port of Melbourne desired for its capital markets debut, according to the issuer and its agents. With a large portion of its acquisition finance now termed out, the issuer says it has scope to consider public markets for future transactions.
On 5 July, Commonwealth Bank of Australia (CommBank) revealed plans to engage with investors regarding the possible refinancing of the A$400 million (US$295.2 million) Class A3-R notes from its Medallion 2013-2 residential mortgage-backed securities (RMBS) transaction.
On 5 July, AMP Group (A/A2) launched a new, minimum A$35 million (US$25.8 million) 2.5-year senior-unsecured domestic transaction. Pricing is expected on the day of launch, according to lead manager Commonwealth Bank of Australia.
South Australian Government Financing Authority (SAFA) executed the largest deal seen in the Australian market in nearly two months on 4 July, printing A$1 billion (US$737.8 million) of new 10-year notes. Andrew Kennedy, Adelaide-based director, treasury services at SAFA, discusses the effect of market conditions on the transaction.
Late in the Sydney day on 3 July, Columbus Capital began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Triton 2018-1. The deal has an indicative total volume equivalent to A$506.4 million (US$374 million), including Class A1-US notes which are denominated in US dollars.
Deal flow in the Australian market, particularly for domestic senior transactions, virtually ground to a halt in June. A confluence of factors contributed to the lack of supply, dealers say, including issuers having prefunded ahead of expected turbulence, relative value and geopolitical tension. But intermediaries insist the market remains open for business.
On 3 July, WEL Networks revealed an indicative margin of 230-250 basis points over swap for its forthcoming five-year, unsecured subordinated transaction. A minimum interest rate of 4.9 per cent was also revealed. The announcement follows the launch of the NZ$125-150 million (US$83.8-100.5 million) deal on 2 July. The final margin and interest rate will be determined following a bookbuild, scheduled for 9 July.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a minimum A$150 million (US$110.1 million) 11-year Kangaroo bond on 3 July. The forthcoming deal is being marketed at 41 basis points area over semi-quarterly swap and 54.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers Mizuho Securities and TD Securities.