News

The third full week of May saw Zurich Finance Australia price a A$350 million (US$265.1 million) five-year domestic debut and ANZ New Zealand print a NZ$500 million (US$346.7 million) five-year domestic deal. Securitisation deal flow continued, with Bank of Queensland and Pepper Group each completing residential mortgage-backed securities transactions.

Virgin Australia (Virgin) priced the Australian market’s first single-B rated, high-yield public bond on 18 May. Deal sources cite a broad spectrum of investor participation as evidence of growing demand for this product, but they caution that the success of similar deals will, like Virgin’s, be dependent on the credit.

Late in the Sydney day on 24 May, Firstmac began taking indications of interest on its new prime residential mortgage-backed securities transaction, Firstmac Mortgage Funding Trust No.4 Series 2018-2 (Firstmac 2018-2). The forthcoming deal is expected to launch and price during the week beginning 4 June, via lead managers ANZ and J.P. Morgan.

On 24 May, Rentenbank (AAA/Aaa/AAA) launched a minimum A$50 million (US$37.7 million) tap of its April 2028 Kangaroo, via TD Securities. Indicative price guidance for the forthcoming transaction is 40 basis points area over semi-quarterly swap and 45 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.

On 23 May, Firstmac mandated ANZ and J.P. Morgan for an Australian dollar-denominated residential mortgage-backed securities transaction (RMBS), with a deal subject to market conditions.

On 23 May, Pepper Group (Pepper) launched its residential mortgage-backed securities (RMBS) transaction, Pepper I-Prime 2018-1 Trust. The deal, expected to price on or before 25 May, has a minimum total volume of A$400 million (US$302.9 million).