News
HSBC Sydney Branch (HSBC Sydney) (AA-/Aa3) launched a new, Australian dollar-denominated benchmark deal on 27 November. The forthcoming three- and five-year floating-rate transaction has indicative price guidance in the area of 60 and 80 basis points respectively over three-month bank bills. The deal is expected to price the day after launch, according to leads ANZ, HSBC and National Australia Bank.
A relatively quiet week for Australian dollar issuance was highlighted by United Overseas Bank, Royal Bank of Canada and Oversea-Chinese Banking Corporation all issuing one-year floating-rate transactions through their Sydney branches. In securitisation, Firstmac priced its third public prime residential mortgage-backed securities transaction of 2017 with an A$600 million (US$457.6 million) deal.
Kommunalbanken Norway (KBN) (AAA/Aaa) launched a minimum A$25 million (US$19.1 million) increase of its January 2032 Kangaroo bond on 24 November. Indicative price guidance for the transaction is 63 basis points area over semi-quarterly swap and Australian Commonwealth government bond. The deal will price on day of launch, according to lead manager ANZ.
Australian green and social impact bond issuance has gained momentum throughout 2017 both domestically and offshore. On 16 November, Westpac Banking Corporation (Westpac) extended its green bond programme to the euro market, pricing a €500 million (US$591.6 million) transaction.
On 23 November, Rentenbank launched a minimum A$50 million (US$38.1 million) increase to its April 2028 Kangaroo bond via Mizuho Securities and TD Securities. The forthcoming tap issue has indicative price guidance in the area of 48 basis points over semi-quarterly swap, equivalent to 55 basis points area over Australian Commonwealth government bond, and will price on 24 November.