News
S&P Global Ratings (S&P) affirmed its triple-A rating on the Australian sovereign – with negative outlook – on 17 May. S&P’s update reflects the consensus view of analysts that the 2017/18 Australian budget largely offers fiscal continuity rather than significant consolidation or deterioration.
On 17 May, Shopping Centres Australasia Property Group (SCA Property) disclosed plans to update debt investors ahead of a potential Australian domestic deal from Shopping Centres Australasia Property Retail Trust (Baa1). Citi, Commonwealth Bank of Australia and Westpac Institutional Bank are arranging the investor update.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched an increase to its March 2024 Kangaroo bond on 17 May. The deal is being marketed at 46 basis points over semi-quarterly swap or 48.25 basis points over Australian Commonwealth government bond via Nomura and RBC Capital Markets.
Caterpillar Financial Australia (Caterpillar) (A/A3) mandated banks for a potential three-year transaction on 17 May. Initial price talk is in the area of 80 basis points over semi-quarterly swap according to the leads, ANZ, TD Securities and Westpac Institutional Bank.
MyState Bank updated the indications of interest process for its Conquest 2017-1 residential mortgage-backed securities (RMBS) deal on 17 May, to include an indicative margin on the top-rated notes. The forthcoming six-tranche transaction has indicative volume of A$400 million (US$297 million).
Bluestone Group (Bluestone) launched its new residential mortgage-backed securities (RMBS) issue, Sapphire XVI 2017-1, on 16 May. The indicative A$250 million (US$185.6 million) transaction has an 12-tranche structure (see table below), in which the class B, C, D and E notes are preplaced according to the deal's lead managers.
Australia’s big-four banks have attacked the levy on their liabilities proposed by the recent federal budget, describing the levy as a rushed, ill thought out, inadequately consulted piece of “bad policy”. All four majors published submissions made to Treasury on 15 May, in which they set out a raft of complaints and proposed changes to the levy.
On 16 May, Nordic Investment Bank (NIB) (AAA/Aaa) launched a capped A$125 million (US$92.7 million) tap to its April 2022 Kangaroo bond. The deal is being marketed at 35 basis points over semi-quarterly swap or 39.5 basis points over Australian Commonwealth government bond and is expected to price on or before 17 May.
Progress 2017-1, a new residential mortgage-backed securities (RMBS) deal from AMP Bank, launched on 16 May. The forthcoming funding and capital-relief transaction has indicative volume of A$500 million (US$370.8 million) and indicative pricing on the class A notes is in the area of 110 basis points over one-month bank bills.