News
Inter-American Development Bank (IADB) (AAA/Aaa) on 3 July mandated Deutsche Bank to increase its existing June 2026 Kangaroo bond. The forthcoming deal is being marketed at 44 basis points over semi-quarterly swap and is expected to price on 4 July according to the lead.
New Terminal Financing (BBB/Baa2), the funding vehicle for Adelaide Airport, mandated a seven-year, Australian dollar-denominated transaction on 3 July. Initial price guidance is in the area of 155-160 basis points over swap according to lead managers ANZ and Westpac Institutional Bank.
Macquarie Leasing mandated banks on 3 July to arrange a series of meetings with asset-backed securities (ABS) investors, to take place in the week beginning 10 July. An Australian dollar-denominated transaction under the SMART Australian auto ABS programmed is expected to follow, subject to market conditions. ANZ, Macquarie Bank and National Australia Bank are arranging the meetings.
The Australian residential mortgage-backed securities (RMBS) market continued its renaissance in the penultimate week of June with two new deals issuing. Auswide Bank printed ABA Trust 2017-1 for A$300 million (US$231.2 million) on 23 June, a day after Columbus Capital (Columbus) netted A$500 million from Triton 2017-1.
In the final week of the first half, the Australian Prudential Regulation Authority (APRA) spoke to the end of the cycle of bank regulation that has governed international standards since the financial crisis, commenting on balancing international standards and national interest. Meanwhile, Ecplix Group issued the first New Zealand dollar-denominated public securitisation transaction of this year, printing NZ$224.39 million (US$164.18 million) of asset-backed securities.
On 30 June, Liberty Financial (Liberty) mandated banks to engage with investors about its residential mortgage-backed securities (RMBS) programme. An Australian dollar- and euro-denominated RMBS transaction may follow, according to arrangers Commonwealth Bank of Australia, Deutsche Bank and National Australia Bank.
Brisbane Airport Corporation (Brisbane Airport) has made an emphatic return to the US private placement (USPP) market. The airport reached the financial close of its fifth USPP offering on 15 June having attracted a near eight-times oversubscription to a US$338 million equivalent transaction, at what it says was highly competitive pricing.
SGSP Australia Assets (SGSP)’s (A-/A3) opened the books on its US dollar-denominated, 10-year, Reg S format benchmark bond on 29 June. Initial price guidance for the forthcoming transaction is in the area of 155 basis points over US Treasuries, according to joint lead managers Commonwealth Bank of Australia, HSBC and Mizuho Securities.