News
Eclipx Group (Eclipx) started marketing a NZ$200 million (US$144.9 million) asset-backed securities (ABS) issue, FP Ignition 2017-B, on 22 June. Eclipx revealed earlier in June that it planned to engage with New Zealand investors in relation to its ABS programme.
Auswide Bank (Auswide) launched its A$300 million (US$226.58 million) ABA Trust 2017-1 residential mortgage-backed securities (RMBS) issue on 21 June. The transaction is expected to price on or before 23 June, according to arranger ANZ and joint lead manager Westpac Institutional Bank.
On 21 June, Teachers Mutual Bank (Teachers Mutual) (BBB/Baa1) mandated a new A$100 million (US$75.7 million) senior-unsecured transaction. Price guidance for the forthcoming three-year deal is in the ‘low 140s’ basis points area over three-month bank bill swap rate.
On 21 June, Police Bank (BBB/BBB) launched a new Australian dollar-denominated one-year floating rate note (FRN) transaction. Indicative pricing on the minimum A$15 million (US$11.4 million) deal is 105-110 basis points over three-month bank bill swap rate. It is expected to price on or before 22 June, according to lead manager ANZ.
New South Wales Treasury Corporation (TCorp) joined its counterpart in Victoria in announcing a return to net new bond issuance for the coming year as the state exits its phase of asset transactions and consequent low or negative funding needs. On 21 June, TCorp disclosed an expected issuance task of A$6.4 billion (US$4.9 billion) for 2017/18 and further growth in the following years.
Peet (NR) has launched an offer of 5.25-year floating-rate notes, with the firm revealing in an Australian Securities Exchange (ASX) announcement on 20 June that it is seeking a minimum A$50 million (US$37.9 million) from the offer.
Landesbank Baden-Wuerttemberg (LBBW) (A1/A- by Moody’s/Fitch) revealed on 20 June that it has mandated an Australian dollar-denominated tier-two EMTN transaction. The 10-year bullet notes are expected to be rated Baa2/BBB with launch timing subject to market conditions.
Moody’s Investors Service (Moody’s) lowered its macro profile for Australia on 19 June, a move that triggered a one-notch downgrade of 12 local banks including the four majors. The downgrade takes the Australian majors to Aa3 – a rating level equivalent to that afforded the big four by the other two largest rating agencies – and drops their New Zealand subsidiaries outside the double-A band, to A1.
On 19 June, Columbus Capital (Columbus) launched its latest Australian dollar-denominated residential mortgage-backed securities (RMBS) deal, Triton 2017-1. The transaction’s indicative volume is A$350 million (US$266.3 million) although joint lead managers Credit Suisse, National Australia Bank and Westpac Institutional Bank add that there is the potential to upsize to A$500 million “subject to demand and final pricing”.
