News
On 28 November, RedZed Lending Solutions (RedZed) launched its second public residential mortgage-backed securities (RMBS) issue of 2017, RedZed Series 2017-2. The forthcoming deal has indicative volume of A$250 million (US$190.1 million) and is expected to price the day after launch, according to arranger National Australia Bank (NAB). Commonwealth Bank of Australia and NAB are joint lead managers.
Following investor meetings in Asia and Australia, held by Australian Gas Infrastructure Group (AGIG) – which represents Australian Gas Networks (BBB+), Multinet Gas (BBB) and Dampier Bunbury Pipeline (BBB), the financing arm of Multinet Gas, Energy Partnership Gas, mandated a new seven-year domestic deal on 28 November. Launch is mooted for the "near term", according to lead managers ANZ and Mizuho Securities.
Liberty Financial (Liberty) launched its new asset-backed securities (ABS) transaction, Liberty 2017-1 Auto, on 28 November. The forthcoming deal has total volume of A$300 million (US$228.2 million) and will not grow. Deutsche Bank and National Australia Bank are leading the deal, which is expected to price on or before 1 December.
Network Finance Company, the financing entity of Endeavour Energy (Baa1) launched a new seven-year Australian dollar denominated benchmark transaction on 28 November. The deal will be in either or both of fixed- and floating-rate formats, with indicative price guidance of 127 basis points area over swap benchmarks. Pricing is expected the day after launch according to joint lead managers Commonwealth Bank of Australia and Mizuho Securities.
The Australian Office of Financial Management (AOFM) completed what was by some distance its most successful divestment auction for its residential mortgage-backed securities (RMBS) portfolio on 23 November. The divestment programme fizzled out in late 2015 on the back of unspectacular demand, but the AOFM says a revised approach and positive market conditions enabled it to return with a superior auction outcome.
Network Finance Company, the financing entity of Endeavour Energy Group (Endeavour Energy) (Baa1), began taking indications of interest on a new seven-year Australian dollar-denominated deal on 27 November. The transaction will be in either or both of fixed- and floating-rate formats, with indicative price guidance of 127 basis points area over swap benchmarks. The deal is expected to launch as early as 27 November, according to lead managers Commonwealth Bank of Australia and Mizuho Securities.
Bank of Communications Sydney Branch (BoCom Sydney) (A/A3/A-) mandated a minimum A$50 million (US$38.1 million) increase to its December 2018 senior-unsecured domestic line on 27 November, with price guidance of 60 basis points area over bank bills. Commonwealth Bank of Australia is leading.
Credit Union Australia (CUA) (BBB/Baa1) launched a new, indicative A$100 million (US$76.1 million), one-year floating-rate note (FRN) transaction on 27 November. Indicative price guidance is 75 basis points area over three-month bank bills, according to lead manager ANZ.
On 27 November, CAF – Development Bank of Latin America (CAF) (AA-/Aa3/AA-) launched a minimum A$50 million (US$38.1 million) increase to its September 2027 Kangaroo, via Nomura. Indicative price guidance for the forthcoming tap issue is 138 basis points area over semi-quarterly swap, equivalent to 145 basis points area over Australian Commonwealth government bond. The deal is expected to price on 28 November.