News

The second week of February was a lighter week of issuance In Australian and New Zealand markets, punctuated by World Bank's A$500 million (US$389.2 million) 10.5-year deal. Meanwhile, National Australia Bank priced the first Australian residential mortgage-backed securities deal for 2018, and the first ever to include a green tranche, with a A$2 billion residential mortgage-backed securities transaction.

On 9 February, Province of Manitoba (Manitoba) (A+/Aa2) launched a minimum A$35 million (US$27.2 million) tap of its August 2027 Kangaroo bond. Indicative price guidance for the forthcoming transaction is 55 basis points over semi-quarterly swap and 59 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager TD Securities.

BNG Bank (AAA/Aaa/AA+) launched a minimum A$35 million (US$27.2 million) increase to its July 2028 Kangaroo bond on 9 February, via Nomura and TD Securities. The forthcoming transaction is being marketed at 53 basis points area over semi-quarterly swap and 58.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.

National Australia Bank (NAB)’s first capital-relief residential mortgage-backed securities (RMBS) deal to price since the financial crisis – and the first RMBS from any issuer in Australia to contain certified green notes – achieved oversubscription across its structure and tight-end-of-guidance pricing despite coming to market in a period of renewed equity-market volatility, the issuer says.

On 8 January, Bluestone Group (Bluestone) began taking indications of interest on a potential residential mortgage-backed securities (RMBS) transaction, Sapphire XVIII 2018-1. The publicly offered tranches have indicative total volume of A$214 million (US$167.4 million). The Class B, Class C, Class D and Class E notes have been preplaced.