News
Goldman Sachs (BBB+/A3/A) launched a seven-year deal in the Australian market on 20 April. Unlike other recent US bank issuance in Australia – including the A$1.2 billion (US$899.4 million) print by Wells Fargo & Company on 19 April – Goldman Sachs is issuing off its Kangaroo programme rather than issuing a global transaction.
IMB Bank revealed on 20 April that it is planning to meet investors in relation to its Illawarra residential mortgage-backed securities (RMBS) programme. A potential Australian dollar-denominated funding and capital-relief RMBS transaction may follow.
Vicinity Centres (Vicinity) (A/A2) priced its debut domestic bond transaction on 19 April, issued by its funding entity Vicinity Centres RE. The benchmark-sized deal included seven- and 10-year notes which were offered at indicative margins of 125-130 basis points over swap and 150 basis points over swap area respectively.
Wells Fargo & Company (Wells Fargo) (A/A2/AA-) priced a new, Australian dollar senior-unsecured global transaction on 19 April. Initial price guidance was 115 basis points over semi-quarterly swap and bank bill swap rate (BBSW) on the transaction’s five-year tranches and 140-145 basis points area over swap and BBSW on its 10-year tranche.
On 19 April, MyState Bank disclosed plans to meet investors in relation to a potential funding and capital-relief Australian dollar transaction under the issuer’s ConQuest residential mortgage-backed securities (RMBS) programme. The meetings are being arranged by National Australia Bank and Westpac Institutional Bank.
Credit Union Australia (CUA) revealed on 19 April that it is planning to engage with investors in relation to its Harvey residential mortgage-backed securities (RMBS) programme. A potential Australian dollar-denominated funding and capital-relief RMBS deal may follow.
On 19 April, Heritage Bank (A3/BBB+ by Moody’s/Fitch) revealed it has mandated banks for a three-year floating-rate domestic deal. The transaction is being marketed in the area of low 130s basis points over three-month bank bills, with launch expected in the near future.
Seek printed A$175 million (US$132.7 million) of institutionally targeted unrated notes in the Australian market during the Easter-shortened week. Elsewhere, deal flow was limited to A$800 million of five-year floating-rate notes issued by Bank of China Sydney Branch and a quickfire corporate green bond follow up as Investa Commercial Property Fund printed A$100 million of 10-year notes.
Having issued two benchmark transactions in less than a month, including a debut in the Kangaroo market, Auckland International Airport (Auckland Airport) says a larger capex task will make the issuer a more frequent visitor to global markets. It highlights the extremely favourable pricing outcome it received in both Australian and New Zealand dollars and the positive tenor evolution of the Australian option.
A rare fully institutionally targeted unrated transaction in the Australian market demonstrates the increasing willingness of fund managers to engage with transactions without a formal rating, deal sources say. But further flow will likely be constrained by the issuer’s unusual status as an unrated entity with investment-grade metrics.
On 12 April, the financing entity for Investa Commercial Property Fund (ICPF) (A-/S&P), ICPF Finance, priced a new 10-year green bond at the tight end of initial price talk of 155-160 basis points over semi-quarterly swap. ICPF Finance’s launch comes in the wake of a series of investor meetings and conference calls which took place during the week of 3 April.