News
Initial price talk on the new, self-led domestic covered-bond benchmark transaction mandated by Westpac Banking Corporation (Westpac) (AA-/Aa2/AA-) on 23 May is 78 basis points over swap. The deal will have five-and-a-quarter-year duration and is being offered in either or both of fixed- and floating-rate format. .
Municipality Finance (MuniFin) (AA+/Aa1) launched a A$15 million (US$11.2 million) minimum increase to its July 2027 Kangaroo on 23 May. The TD Securities-led tap is being marketed at 65 basis points over swap or 78 basis points over Australian Commonwealth government bond.
Bank of Tokyo-Mitsubishi UFJ Sydney Branch (BTMU Sydney) (A+/A1) launched a new two-year deal on 23 May, seeking a minimum of A$100 million (US$74.7 million) at an indicative margin of 75 basis points over bank bills. Pricing is expected on the day of launch according to National Australia Bank, the deal’s lead.
Liberty Financial (Liberty) (BBB-/S&P) added a step-up margin – of 50 basis points – as well as a 50 basis points revision to initial price thoughts to the senior-unsecured deal it launched on 22 May. These amendments follow S&P Global Ratings’ downgrade of the standalone credit profiles of 23 Australian financial institutions, including a lowering of Liberty’s rating to BBB- stable from BBB negative.
On 22 May, the capped A$400 million (US$297.6 million) residential mortgaged-backed securities (RMBS) issue for MyState Bank progressed to launch. Price guidance is disclosed on all six-tranches of Conquest 2017-1, which is expected to price on 26 May.
ING Bank Australia (ING Australia) launched its new, A$500 million (US$372 million), IDOL 2017-1 residential mortgage backed securities (RMBS) deal on 22 May. The forthcoming transaction has a six-tranche structure, five tranches of which will be retained.