News
ETSA Utilities Finance (ETSA Utilities), guaranteed by SA Power Networks (A/A3), launched a seven-year domestic benchmark deal on 17 August. Commonwealth Bank of Australia and Mizuho Securities are leading the forthcoming deal, which has initial price guidance of 125 basis points area over semi-quarterly swap.
Bank of Tokyo-Mitsubishi UFJ Sydney Branch (BTMU Sydney) (A+/A1) launched a new, three-year benchmark domestic deal on 17 August. Price guidance on the forthcoming transaction is 78 basis points area over semi-quarterly swap and bank bills, according to lead managers MUFG Securities, Morgan Stanley, National Australia Bank and Westpac Institutional Bank.
ANZ Banking Group (ANZ) has revealed plans for an additional-tier-one offer to raise up to A$1 billion (US$396.2 million), according to an announcement lodged with the Australian Securities Exchange (ASX) on 16 August. A bookbuild to determine the margin on the ANZ Capital Notes 5 is scheduled for 23 August with pricing expected to be in the range of 380-400 basis points over bank bills.
Late in the Australia day on 15 August, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched a minimum A$100 million (US$78.4 million) increase to its September 2026 Kangaroo bond. The forthcoming deal is being marketed at 47 basis points over semi-quarterly swap, according to lead managers RBC Capital Markets and TD Securities.
On 15 August, the five-year domestic benchmark deal for Optus Finance (Optus) (A by S&P), the wholly owned subsidiary of Singtel Optus (A2), progressed to launch. Initial price guidance on the forthcoming deal is 105 basis points area over semi-quarterly swap, according to lead managers ANZ and Commonwealth Bank of Australia.
The cost of funding in Australian dollars is well inside other options at present, including US private placement (USPP). So says Victoria Power Networks (VPN)’s treasurer in the wake of its first domestic transaction in three-and-a-half years. A trio of factors enabled VPN to achieve record-breaking pricing.
On 14 August, Australian Finance Group (AFG) disclosed plans to engage with investors during the week of 21 August in relation to its residential mortgage-backed securities (RMBS) programme. A potential Australian dollar-denominated RMBS offering senior and subordinated securities may follow, the meetings’ arrangers ANZ and National Australia Bank add.
Suncorp-Metay (Suncorp) (A+/A1/A+) revealed on 14 August that it has launched a minimum A$100 million (US$79.2 million) increase to its August 2026 domestic covered bond. The forthcoming tap issue is being marketed at 110 basis points area over semi-quarterly swap and is expected to be rated Aaa/AAA by Moody’s Investors Service/Fitch Ratings, according to lead managers ANZ and Deutsche Bank.