News
Banco Santander (A-/A3-/A) revealed on 10 July that it has mandated banks for a potential Australian dollar-denominated, 5.5-year senior nonpreferred deal off its EMTN programme. The issuer is also considering an additional 10-year senior nonpreferred tranche “subject to enquiry”.
Commonwealth Bank of Australia (CommBank) took advantage of tight credit spreads and long-dated demand to print its longest-ever benchmark transaction on 6 July. The bank printed US$1.5 billion of 30-year bonds, tripling the duration of its previous longest-dated senior-unsecured deal and adding more than four months to its weighted-average portfolio duration at the same time.
The first week of July was characterised by returns to the market. Adelaide Airport printed A$200 million (US$151.7 million) in its first deal since 2010, and Metropolitan Life Global Funding I (MetLife) returned after nearly three years away with a A$300 million 10-year transaction. Meanwhile, Queensland Treasury Corporation (QTC) added A$750 million to its August 2027 domestic bond.
The latest total loss-absorbing capacity (TLAC)-compliant deal denominated in Australian dollars to come to market attracted incrementally more domestic demand than its closest comparison transaction, leads say. When – and even whether – this type of issuance will migrate to Kangaroo documentation remains an open question, however.
ANZ Banking Group launched a A$50 million (US$37.9 million) minimum tap to its September 2027 domestic line on 7 July. The self-led deal is being marketed at 105bp/s-q and will price the same day as launch.
European Investment Bank (EIB) (AAA/Aaa/AAA) mandated a A$200 million (US$151.7 million) tap to its August 2022 Kangaroo bond late on 6 July. The transaction is being marketed at 39 basis points over semi-quarterly swap or 49 basis points over Australian Commonwealth government bonds. The transaction is expected to price on 7 July, according to lead manager Nomura.
