News
On 23 November, Liberty Financial (Liberty) mandated investor meetings in relation to a new asset-backed securities (ABS) transaction, Liberty 2017-1 Auto. The deal has total volume of A$300 million (US$228.2 million) and will not grow. Deutsche Bank and National Australia Bank are leading.
On 23 November, Bank of Queensland (BOQ) launched a new, indicative A$300 million (US$228.2 million) additional tier one (AT1) notes offer. Price guidance is 375-395 basis points over three-month bank bills, with a final margin to be set on or around 29 November following a bookbuild. The offer will open on 30 November and the settlement date is expected to be 28 December.
A trifecta of nonconforming residential mortgage-backed securities (RMBS) deals priced early in Q4 – from Bluestone Group (Bluestone), Pepper and Resimac – serve to illustrate the ongoing positive demand story for the Australian asset class.
International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$50 million (US$38 million) increase to its October 2027 Kangaroo bond on 23 November, via Bank of America Merill Lynch. The transaction is expected to price on day of launch.
On 23 November, Firstmac launched its latest prime residential mortgage-backed securities (RMBS) transaction, Firstmac Mortgage Funding Trust No.4 Series 3-2017. The transaction has volume of A$600 million (US$456.8 million) and will not grow. Pricing is expected on day of launch, according to arranger J.P. Morgan and joint lead manager Westpac Institutional Bank.
On 23 November, Royal Bank of Canada Sydney Branch (RBC Sydney) (AA-/A1/AA) launched a new one-year domestic benchmark floating-rate transaction. The forthcoming deal has indicative price guidance of 30 basis points area over three-month bank bills. Pricing is expected on day of launch, according to lead manager RBC Capital Markets.
Firstmac mandated J.P. Morgan and Westpac Institutional Bank to explore a new residential mortgage-backed securities (RMBS) transaction on 21 November, with a potential Australian dollar-denominated RMBS to follow, subject to market conditions.
United Overseas Bank Sydney Branch (UOB Sydney) (AA-/Aa1/AA-) launched a one-year Australian dollar benchmark deal on 21 November with price guidance in the area of 26 basis points over three-month bills. Pricing is expected on the same day as launch, according to lead managers ANZ, UOB and Westpac Institutional Bank.
Leads and issuer on Australia’s third-ever wholesale additional tier-one (AT1) deal and the first to write off rather than convert at point of nonviability (PoNV) – as printed by ME Bank on 16 November – say the transaction demonstrates the continued evolution of bank capital optimisation.
Think Tank Group (Think Tank) has mandated Commonwealth Bank of Australia and Westpac Institutional Bank to engage investors on a potential Australian dollar SME-backed transaction, which may emerge subsequently subject to market conditions.