News
Northern Territory Treasury Corporation (NTTC) revealed its borrowing programme for the coming financial year on 1 May, following the announcement of the territory budget. The programme has been revised slightly higher to approximately A$1.75 billion (US$1.3 billion) from A$1.5 billion forecast in the 2017/18 budget.
On 1 May, following the release of the Victorian state budget, Treasury Corporation of Victoria revealed a funding requirement for the financial year ending 30 June 2019 of A$2.1 billion (US$1.6 billion). The requirement is lower than previously forecast, treasury forecasts from the May 2017 budget having indicated an expected funding need of A$4.6 billion for 2018/19.
Liberty Financial (Liberty) says its first residential mortgage-backed securities (RMBS) transaction for 2018 attracted a raft of new investors, contributing to the deal achieving total volume of more than double the launch target. The issuer attributes this result to its extensive investor-relations work.
On 1 May, FlexiGroup launched its asset-backed securities (ABS) transaction, Flexi ABS Trust 2018-1, for an indicative A$300 million (US$226 million). KangaNews understands the structure includes two green tranches, Class A2-G and Class B-G notes, which have a combined indicative volume of A$81.3 million.
On 30 April, Virgin Australia Holdings (Virgin Australia) (B+/B2) revealed plans to meet debt investors in Asia and Australia regarding a possible Australian dollar-denominated transaction. The meetings, to commence on 3 May, will be arranged by ANZ, HSBC and UBS.
Liberty Financial (Liberty) (BBB-/S&P) launched an indicative A$50 million (US$37.9 million) increase to its April 2021 domestic line on 30 April. The forthcoming deal is being marketed at 300 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to lead managers National Australia Bank and Westpac Institutional Bank.
Bank of Queensland priced a A$200 million (US$151 million) tier-two domestic deal in what was a holiday-interrupted week in Australasian debt capital markets. This did not stop gathering securitisation momentum, as Liberty Financial netted A$1.5 billion in its first residential mortgage-backed securities transaction for 2018.
On 27 April, Bank of Queensland (BOQ) mandated Commonwealth Bank of Australia, National Australia Bank, SMBC Nikko and Westpac Institutional Bank to engage with investors regarding its REDS residential mortgage-backed securities (RMBS) programme. An Australian dollar-denominated transaction from the programme may follow.
Ausgrid Finance (Ausgrid) added to its landmark US private placement (USPP) and Australian domestic deals from 2017 in April, with a €650 million (US$793.6 million) and a dual-tranche US$1 billion 144A/Reg S transaction. Michael Bradburn, chief financial officer at Ausgrid in Sydney, shares exclusive insights on pricing objectives, market selection and sentiment with KangaNews.