News
New Zealand domestic corporate deal flow is underway for 2018, with GMT Bond Issuer, the financing arm of Goodman Property trust (Goodman), and Transpower New Zealand (Transpower) pricing transactions that deal sources say demonstrate supportive demand dynamics. A notable feature of these transactions is crossover demand from retail and institutional investors.
On 6 March, Rentenbank (AAA/Aaa/AAA) launched a minimum A$50 million (US$38.9 million) tap of its April 2028 Kangaroo line, via TD Securities. Indicative price guidance for the forthcoming transaction is 43 basis points area over semi-quarterly swap and 46.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
Firstmac launched its residential mortgage backed securities (RMBS) transaction, Firstmac Mortgage Funding Trust No.4 Series 1-2018 (Firstmac 1-2018), on 6 March. The total volume of the transaction is a minimum A$500 million (US$388.6 million), including the US dollar denominated Class A1-U notes. The Class B, Class C, Class D, Class E and Class F notes are not for sale.
On 6 March, DBS Group Holdings (DBS) (AA-/Aa2) revealed plans to hold a series of investor conference calls regarding a possible inaugural 10-year non-call five year tier-two Kangaroo deal. Indicative price guidance on the transaction is 160-165 basis points area over swap benchmarks. The notes are expected to be rated A3/A+ by Moody’s Investors Service and Fitch Ratings.
On 6 March, Pepper Group (Pepper) mandated the refinancing of its Class AR-u notes from the Pepper Residential Securities Trust No. 16 residential mortgage-backed securities (RMBS) transaction. The notes have an issue size of A$124 million (US$96.2 million) and will be used to repay the US dollar denominated A1-u2 notes. Indicative price guidance for the forthcoming deal is 105 basis points area over one-month bank bills.
Nation Australia Bank (NAB) (AA-/Aa3/AA-) launched a new, self-led, multi-tranche Australian dollar denominated covered bond on 6 March. The five-year tranche, to be in either or both of fixed- and floating-rate formats, has indicative price guidance of 65 basis points area over swap benchmarks. The 10-year tranche is being marketed at 88 basis points area over semi-quarterly swap. The bonds are expected to be rated Aaa/AAA by Moody’s Investors Service and Fitch Ratings.
On 6 March, the New Zealand Debt Management Office (NZDMO) revealed plans to repurchase up to NZ$250 million (US$180.7 million) of its March 2019 nominal bond on 7 March. The NZDMO says the final amount to be repurchased will depend on portfolio requirements and market conditions.
On 6 March, Toronto Dominion Bank (TD Bank) (AA-/Aa2) launched a new one-year Kangaroo floating-rate note (FRN). The forthcoming self-led deal is expected to price on the day of launch, and has indicative price guidance of 35 basis points area over semi-quarterly swap.