News
Leads on the first-ever total loss-absorbing capacity (TLAC)-compliant transaction denominated in Australian dollars say domestic interest in the deal was high despite complexities around pricing and other headwinds. Most importantly, they say there was apparent willingness to engage on the so-called “tier-three” asset class and little objection to the use of EMTN format.
Meridian Energy (BBB+ by S&P) completed a new seven-year domestic deal in the New Zealand market on 10 March. The transaction was for volume of NZ$100-150 million (US$70.2-105.3 million) and it had an indicative margin range of 150-160 basis points over swap.
On 9 March, Shinhan Bank (Shinhan) (A+/Aa3) priced a new four-year Kangaroo. Price guidance was 115 basis points area over semi-quarterly swap and bank bills. Launch of the transaction followed a series of meetings with fixed-income investors.
BNP Paribas (A/A1/A+, with an expected issue rating of A-/Baa2/A+) priced an Australian dollar-denominated “senior nonpreferred” transaction in EMTN format on 9 March. Senior nonpreferred issuance is the method French banks are employing to achieve total loss-absorbing capacity (TLAC) compliance.
Bendigo and Adelaide Bank (BEN) priced its first prime residential mortgage-backed securities (RMBS) issue of 2017 on 9 March. Torrens Series 2017-1 Trust has a six-tranche structure which was upsized from indicative aggregate volume of A$500 million (US$379.5 million).
