News
Sumitomo Mitsui Financial Group (SMFG) (A-/A1) launched a new SEC-registered, Australian dollar-denominated, 5.5-year benchmark bond on 30 August. The forthcoming deal is expected to emerge in either or both of fixed- or floating-rate format, with initial price guidance in the context of 125 basis points area over swap benchmarks.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) mandated a new 2028-maturity Kangaroo bond on 30 August. Initial price guidance is in the area of 49 basis points over semi-quarterly swap or 52.125 basis points over Australia Commonwealth government bond, according to lead managers Deutsche Bank, Nomura and TD Securities.
Motor Trade Finance (MTF) revealed on 30 August that it has started taking indications of interest for the Class A notes of its latest asset-backed securities (ABS) deal, MTF Sierra Trust 2017. The notes have indicative volume of NZ$194.04 million (US$140.85 million) and initial price guidance of in the area of 125 basis points over one-month bills for a weighted average life of 2.8 years.
On 30 August, Bank of Nova Scotia Australia Branch (BNS Australia) (A+/A1/AA-/AA) mandated a debut Australian dollar-denominated five-year benchmark bond. The transaction is expected to launch in the near future, according to lead managers ANZ, Scotiabank, UBS and Westpac Institutional Bank.
The 2017/18 Australian Commonwealth budget enabled the Australian Office of Financial Management (AOFM) to project a reduced year-ahead funding requirement for the first time since the financial crisis. Although market participants have no expectation of significant surpluses ahead, they are thinking about how lower government bond issuance might affect market dynamics – with eyes turning first to the sluggish 20-year futures contract.
On 29 August, Province of Ontario (Ontario) (A+/Aa2) launched a minimum A$25 million (US$19.8 million) tap to its January 2027 Kangaroo. Initial price guidance for the forthcoming deal is in the area of 70 basis points over semi-quarterly swap or 74 basis points over Australian Commonwealth government bond.
Liberty Funding (Liberty) launched its first SME-backed transaction of 2017, Liberty 2017-1 SME Trust, on 28 August. The forthcoming A$500 million (US$396.8 million) no-grow deal is expected to price on or before 29 August, according to arranger Westpac Institutional Bank and additional lead manager Credit Suisse.
GPT Wholesale Shopping Centre Fund (A- by S&P) mandated a seven-year Australian dollar-denominated transaction on 28 August. The forthcoming deal is expected to launch “in the near future”, according to joint lead managers ANZ and National Australia Bank.