News
In a New Zealand government bond (NZGB) programme update released on 23 August, the New Zealand Debt Management Office (NZDMO) revealed that its 2017/18 programme will remain unchanged in light of the pre-election economic and fiscal update 2017.
Suncorp-Metway (Suncorp) disclosed on 23 August that it is preparing to engage with investors in relation to its Apollo residential mortgage-backed securities (RMBS) programme. An Australian dollar-denominated RMBS transaction may follow, according to the meetings’ arrangers ANZ, Macquarie Bank, National Australia Bank and Westpac Institutional Bank.
On 23 August, DBS Bank launched a new, minimum A$300 million (US$237.4 million) three-year covered bond. The forthcoming deal, which has an expected rating of Aaa/AAA (Moody’s/Fitch), will emerge in either or both or fixed- or floating-rate format and is being marketed in the area of 53 basis points over swap benchmarks. Pricing is expected in the near future, according to joint lead managers ANZ, Deutsche Bank, DBS Bank, National Australia Bank and RBC Capital Markets.
The 10.25-year non-call 5.25-year Australian dollar tier-two deal for AMP progressed to launch on 23 August. The forthcoming transaction, which has an expected rating of BBB by S&P Global Ratings, is being marketed in the area of 190-200 basis points over three-month bank bill swap rate, according to joint lead managers National Australia Bank, UBS and Westpac Institutional Bank.
Global Switch Property Australia (Global Switch) launched an offer to buy back all or some of its A$100 million (US$79.1 million) December 2020 domestic notes on 22 August. The offer is being made as part of Global Switch’s liability management and to decrease its overall level of indebtedness, the issuer says.
On 22 August, La Trobe Financial revealed plans to meet debt investors in a series of meetings due to commence on 29 August. A nonconforming residential mortgage-backed securities (RMBS) transaction may follow, according to the meetings’ arrangers Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank and Natixis.
On 22 August, the Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) launched a new index-linked syndicated benchmark bond due in November 2027. Initial price guidance for the forthcoming deal is in the area of 9.5 to 12.5 basis points over the mid yield of the September 2025 linker, which equates to around -179.5 to -176.5 basis points to the implied yield for the primary 10-year treasury bond futures contract.
On 22 August, the multi-tranche domestic deal for Anheuser-Busch InBev (AB InBev)’s (A-/A3) fully guaranteed subsidiary, FBG Finance, progressed to launch. According to lead managers ANZ, Citi and Deutsche Bank, the forthcoming deal will comprise five-year fixed- and floating-rate tranches with initial price guidance in the area of 100-105 basis points over semi-quarterly swap and bank bills respectively, as well as a seven-year fixed-rate tranche with initial price guidance in the area of 125-130 basis points over semi-quarterly swap and a 10-year fixed-rate tranche with initial price guidance in the area of 145-150 basis points over semi-quarterly swap.
Northern Territory Treasury Corporation (NTTC) (Aa2) launched a minimum A$300 million (US$237.6 million) five-year benchmark bond via syndication on 21 August. Initial price guidance on the forthcoming transaction is 66-70 basis points area over EFP.
On 21 August, Australian Finance Group (AFG) began taking indications of interest on a new residential mortgage-backed securities (RMBS) transaction, AFG Series 2017-1. The deal is expected to launch in during the week of 28 August, according to arranger ANZ and additional lead manager National Australia Bank.
Anheuser-Busch InBev (AB InBev) (A-/A3) mandated an Australian dollar-denominated deal for its fully guaranteed subsidiary, FBG Finance, on 21 August. The transaction will launch in the near future, according to lead managers ANZ, Citi and Deutsche Bank.