News
National Australia Bank (NAB) completed Australia's first retail tier-two subordinated issue on 20 March. According to an announcement lodged with the Australian Securities Exchange (ASX), the offer was upsized to A$943.2 million (US$699.3 million) with pricing at the tight end of 220-230 basis points over bank bills indicative margin.
In the wake of the largest-ever green bond to price in the Australian dollar market – a capped A$750 million (US$575.1 million) seven-year issue by Queensland Treasury Corporation (QTC) – lead managers predict further evolution of the sector in 2017, including corporate supply. The state treasury corporation itself says it sees green bonds forming a regular component of its funding mix.
Kiwibank’s decision to pull a planned Kangaroo transaction between pricing and settlement, with no explanation provided at the time, caused a stir in markets this week. The decision was driven by a preliminary Reserve Bank of New Zealand view that the issuer’s outstanding tier-one and tier-two securities may not comply with the local capital-adequacy regime. In the wake of its debut green-bond transaction, Queensland Treasury Corporation says green could form a regular component of its funding mix.
Liberty Financial (Liberty) priced an upsized residential mortgage-backed securities (RMBS) issue – Liberty Series 2017-1 Trust – on 17 March. The transaction had A$500 million (US$378.3 million) indicative volume and price guidance of 140 basis points over one-month bank bills on the A$250 million 2.5-year weighted-average life (WAL) class A1-b notes and 225 basis points over bills on the A$82.5 million 3.5-year WAL class A2 notes.
National Australia Bank (NAB) (AA-/Aa2/AA-) printed A$500 million (US$384.5 million), upsized from A$250 million at launch, in a five-year fixed-rate social “gender-equality” bond on 17 March. The self-led transaction had initial price guidance of 95 basis points area over semi-quarterly swap.
Export Development Canada (EDC) (AAA/Aaa) tapped its June 2021 Kangaroo bond by A$225 million (US$172.6 million) on 17 March, bringing the total on issue in this line to A$1 billion. The transaction’s pricing margin was tightened by 2 basis points from its launch level of 39 basis points over semi-quarterly swap.
On 17 March, Investa Office Fund (BBB+ by S&P) revealed plans to hold a series of investor meetings and conference calls during the week of 20 March. A potential Australian dollar deal may follow, the meetings’ arranger, ANZ, adds.
La Trobe Financial priced a A$300 million (US$230.4 million) nonconforming residential mortgage-backed securities (RMBS) issue – La Trobe 2017-1 – on 16 March. Indicative price guidance over one-month bank bills was 145 basis points area on the A$165 million 2.1-year weighted-average life (WAL) A1 tranche, 190 basis points area on the A$45 million 2.1-year WAL A2 class and 200 basis points area on the A$45.3 million 2.1-year A3 class.
On 14 March, Queensland Treasury Corporation (QTC) (AA+/Aa1) priced an upsized March 2024-maturity, 144A-eligible green bond transaction. The deal was increased from A$500 million (US$378.1 million) at launch. Joint lead managers ANZ, Bank of America Merrill Lynch and National Australia Bank led the deal, pre-issuance for which was issued under the Climate Bonds Standard by the Climate Bonds Standards Board of the Climate Bonds Initiative.