News
On 11 October, Bluestone Group (Bluestone) revealed plans to hold meetings with Australian nonconforming residential mortgage-backed securities (RMBS) investors during the week beginning 16 October. Commonwealth Bank of Australia and Macquarie Bank are arranging the meetings, with an Australian dollar nonconforming RMBS transaction under Bluestone's Sapphire programme potentially following.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched a minimum A$200 million (US$155.3 million) increase to its February 2022 Kangaroo bond on 10 October. The deal will price no later than 11 October and is being marketed in the area of 31 basis points over semi-quarterly swap. Citi and J.P. Morgan are joint lead managers.
On 10 October, Queensland Treasury Corporation (QTC) (AA+/Aa1) launched the syndication of a new benchmark Australian dollar bond due 21 August 2030. Initial price guidance on the 144A-eligible notes is 74 to 77 basis points over the 10-year futures contract. ANZ, Citi, Deutsche Bank and Westpac Institutional Bank are leading the deal, which is due to price on or before 11 October.
Bank of China New Zealand (BoC New Zealand) (A/A1) launched a domestic five-year transaction on 10 October. The deal is for minimum volume of NZ$75 million (US$53 million) and is being marketed at 135-145 basis points over semi-annual swap via ANZ and Westpac Institutional Bank.
The report of Australia’s Productivity Commission into the way goods and services tax (GST) receipts are shared will, if adopted, entail a major revenue spike for Western Australia (WA). WA has seen its GST grants from the Commonwealth grants fall to less than 30 cents in the dollar GST raised in the state at times, but the Productivity Commission’s recommendations could see WA’s GST grant revenue increase by as much as A$3.6 billion a year (US$2.8 billion).
Resimac disclosed price guidance on its forthcoming issue of nonconforming residential mortgage-backed securities (RMBS), Resimac Bastille Trust Series 2017-1, on 9 October. The issuer is taking indications of interest on the deal, which is being arranged by National Australia Bank with Commonwealth Bank of Australia, Deutsche Bank and Macquarie Bank as additional lead managers.
On 9 October, United Energy Distribution (UED) (BBB+ by S&P) revealed plans for a debt investor update call to be held on 10 October. A seven-year domestic deal may follow, the call’s arrangers – ANZ and National Australia Bank – add.
On 9 October, Flexi Cards launched a new asset-backed securities (ABS) issue under its Q Card Trust programme. The forthcoming deal has indicative volume of NZ$120 million (US$84.8 million) and is expected to price on or before 12 October.
On 9 October, Heritage Bank launched an indicative A$500 million (US$388.8 million) residential mortgage-backed securities (RMBS) transaction, HBS Trust 2017-1. The forthcoming deal is expected to price on or before 11 October, arranger National Australia Bank and additional lead managers ANZ and Westpac Institutional Bank, add.
On 9 October, Auckland International Airport (A-/S&P) launched a NZ$75-125 million (US$53.0-70.6 million), April 2023-maturity retail domestic deal under same-class exemption rules. According to joint lead managers Commonwealth Bank of Australia and Westpac Institutional Bank, the offer has an indicative margin range of 82 to 87 basis points over mid-swap, with the final margin and interest rate to be announced following a bookbuild on 11 October.
New primary flow was limited to Kangaroo issuance during the first week of October with deals from Province of Alberta and African Development Bank. Adding to the future pipeline, Auckland International Airport revealed it is preparing to update Australian dollar investors and Queensland Treasury Corporation mandated an August 2030 syndicated benchmark.