News
On 25 June, Teachers Mutual Bank (Teachers Mutual) (BBB/Baa1) launched an indicative A$100 million (US$74.4 million) three-year domestic floating-rate note (FRN) transaction. Indicative price guidance for the forthcoming deal is 140 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to lead managers National Australia Bank and Westpac Institutional Bank.
The third week of June saw the first-ever domestic green bond in New Zealand, with Auckland Council's NZ$200 million (US$137.9 million) five-year deal. AMP Bank's A$1 billion (US$739.4 million) residential mortgage-backed securities transaction highlighted deal flow in Australia.
On 20 June, Australian Finance Group (AFG) launched its residential mortgage-backed securities (RMBS) transaction, AFG 2018-1 Trust. The forthcoming deal has a total volume of A$350 million (US$258.7 million), which will not grow, and is expected to price on the day of launch. ANZ is arranging the transaction and leading alongside National Australia Bank.
Auckland Council (AA/Aa2) revised the indicative margin on its forthcoming green bond transaction to 50-53 basis points over swap on 20 June, from 47-55 basis points over swap at launch on 18 June. The final margin for the NZ$150-200 million (US$103.6-138.2 million) five-year deal will be set following a bookbuild on 21 June, according to arranger and lead manager ANZ.
Late in the Sydney day on 19 June, following the release of the New South Wales (NSW) state budget, NSW Treasury Corporation (TCorp) revealed a A$6.6 billion (US$4.9 billion) term-funding requirement for the 2018/19 financial year. The borrowing programme is comprised of A$2.4 billion of new client loans and A$4.2 billion of projected maturities.
On 19 June, Optus Finance (Optus) mandated ANZ and Westpac Institutional Bank to arrange a fixed-income investor update, to take place in the week commencing 25 June.
AMP Bank launched its residential mortgage-backed securities (RMBS) transaction, Progress 2018-1, on 19 June. The forthcoming deal has an indicative total volume of A$750 million (US$556.7 million) and is expected to price on or before 22 June.