News
Mercedes-Benz Australia (Mercedes-Benz) revealed on 8 June that it has mandated Commonwealth Bank of Australia and TD Securities for an Australian dollar-denominated three-year transaction in EMTN format. The notes will be guaranteed by Daimler (A/A2/A).
Late on 7 June, BNG Bank (AAA/Aaa/AA+) mandated a minimum A$25 million (US$18.9 million) tap to its July 2027 Kangaroo bond. The deal is being marketed at 70 basis points over semi-quarterly swap or 85 basis points over Australian Commonwealth government bond and is expected to price on 8 June, according to lead managers Nomura and TD Securities.
On 7 June, Holcim Finance (Holcim) launched a new Australian dollar-denominated, five-year senior-unsecured transaction. Initial price guidance is in the area of 160 basis points over semi-quarterly swap and it is expected to price no later than 8 June, according to joint lead managers ANZ, National Australia Bank and UBS.
South Australian Government Financing Authority (SAFA) (AA/Aa1) revealed updated price guidance for its September 2027 syndicated reopening on 7 June. The issuer says the book has built steadily and is now approaching A$1.2 billion (US$901.7 million) in “soft and firm” bids, with price guidance revised to 61.5 basis points over EFP from 61-62 basis points at launch and to 58.25 basis points from 57.75-58.75 basis points over Australian Commonwealth government bond.
Eclipx Group (Eclipx) disclosed on 6 June that it is planning to engage with investors in relation to its asset-backed securities (ABS) programme. A potential New Zealand dollar-denominated transaction may follow, according to arrangers ANZ, BNZ and Westpac Institutional Bank.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a minimum A$200 million (US$149.8 million) increase to its September 2023 Kangaroo bond and a further A$100 million minimum to its September 2027 Australian dollar line on 6 June. The transactions are being marketed at 39 and 48 basis points over semi- quarterly swap respectively, or 53.5 and 65 basis points over Australian Commonwealth government bond.
Australia’s resurgent securitisation market received a further boost at the start of June as Commonwealth Bank of Australia (CommBank) became the first big-four bank of the year to price a residential mortgage-backed securities (RMBS) deal. Recent deals continue to demonstrate the evolution of demand for Australian securitisation across investor geography and credit level, issuers say.