News
The arranger of Australia’s latest social benefit bond (SBB) says institutional investors are taking a more proactive interest in the asset class – though substantial allocations remain a work in progress. The frequency of impact-investment transactions has grown in 2017, but to attract the institutional investor base market participants say more scale is still needed.
On 27 September, Bank of Montreal (BMO) (A+/A1/AA-) revealed plans for an inaugural Australian dollar benchmark deal. The forthcoming deal will be in either or both of fixed- and floating-rate format and has price guidance of 95 basis points area over swap benchmarks.
European Investment Bank (EIB) (AAA/Aaa/AAA) mandated a tap to its August 2022 Kangaroo bond on 27 September. The forthcoming deal has minimum volume of A$300 million (US$236.3 million) and indicative price guidance in the area of 35 basis points over semi-quarterly swap.
AMP Bank (A/A2) launched a senior domestic benchmark on 27 September. The forthcoming three-year deal will emerge in either of fixed- or floating-rate format with price guidance of 75 basis points area over swap benchmarks. ANZ, Commonwealth Bank of Australia and UBS are leading.
L-Bank (AAA/Aaa/AAA) mandated the introduction a new, April 2028 maturity, Kangaroo bond on 26 September. The new line’s inauguration is being marketed at 62 basis points over semi-quarterly swap by lead managers Commonwealth Bank of Australia, Deutsche Bank, Nomura and RBC Capital Markets. Pricing is expected on 27 September.
Ausgrid (Baa1) will commence an investor roadshow in Australia and Asia on 9 October, ahead of a potential Australian dollar capital-markets debut issue. Mizuho Securities, National Australia Bank and Westpac Institutional Bank are arranging the investor meetings, which will take place in Sydney, Melbourne, Singapore, Hong Kong and Tokyo.
Province of Manitoba (Manitoba) (A+/Aa2) launched an increase to its August 2027 Kangaroo on 26 September. The ANZ-led deal, which will price on day of launch, is for minimum volume of A$50 million (US$39.7 million) and is being marketed at 70 basis points area over semi-quarterly swap.