News
The prominence of the residential sector within Australia’s economy and financial markets makes the mortgage a fascinating prospect for sustainable investment evolution. At the Australian Securitisation Forum’s annual conference on 21 November, two market participants closely connected with the development of the local sustainable debt market discussed the prospects for investable green mortgages.
Treasury Corporation of Victoria (TCV) lowered its funding requirement for the remainder of the 2017/18 fiscal year, following Victoria’s mid-year budget update. Even so, TCV still needs to raise an additional A$2.5-3 billion (US$1.9-2.3 billion) before the end of June 2018.
The Australian Office of Financial Management (AOFM) completed the ninth auction under its programme to divest its remaining holdings of residential mortgage-backed securities (RMBS) on 14 December. A total cash value of A$439.24 million (US$336.87 million) of RMBS was sold across five lines originally issued by Suncorp Group, Bank of Queensland and Firstmac, representing 100 per cent of the securities on offer.
New South Wales Treasury Corporation (TCorp’s) term-funding requirement for 2017/18 remained unchanged following the New South Wales government’s half-yearly review, TCorp revealed on 14 December. Net new client loans and projected term maturities are also in line with the state budget in June.
In conjunction with the half-year economic and fiscal update (HYEFU) 2017, the New Zealand Debt Management Office (NZDMO) revealed in a New Zealand government bond (NZGB) programme update released on 14 December that its 2017/18 programme will remain unchanged from that published in its previous programme update, in August this year.
ANZ New Zealand (ANZ NZ) (AA-/A1/AA-) launched a new, indicative NZ$100 million (US$70.2 million), three-year floating rate note (FRN) on 14 December. Indicative price guidance on the forthcoming transaction is 70-73 basis points area over three-month bank bills. The self-led deal is expected to price the day after launch.
South Australian Government Financing Authority (SAFA) garnered a two-and-a-half times oversubscription in its fourth syndicated transaction of calendar year 2017. The issuer tells KangaNews this outcome reflects several market-driven factors as well as its own unique approach to syndication.
International Finance Corporation (IFC) (AAA/Aaa) launched an increase to its October 2027 Kangaroo bond on 12 December. The deal is for minimum volume of A$50 million (US$37.7 million) and is being marketed at 43 basis points over swap or 51.5 basis points over Australian Commonwealth government bond by Mizuho Securities and TD Securities.