News
The Australian securitisation market received another boost on 24 February as Suncorp returned to residential mortgage-backed securities (RMBS) issuance with an upsized, oversubscribed deal. Apollo Series 2017-1 Trust (Apollo 2017-1) was a highly cost-competitive funding option, the issuer says, thanks in part to the capital relief generated by support from investors right down the deal structure.
On 28 February, Commonwealth Bank of Australia (CommBank) announced it has completed the bookbuild on its tier-one hybrid offer, Perls IX. The deal has been increased to A$1.45 billion (US$1.11 billion) from A$750 million at launch and the margin has been set at 390 basis points over bank bills, the tight end of the indicative 390-410 basis points over bank bills range.
The 14th annual Debt Market Update (DMU), published by Commonwealth Bank of Australia (CommBank) in February, homes in on the potential for political turbulence to feed into capital markets as 2017 progresses. Borrowing conditions are positive at the start of the year, but CommBank is counselling its clients not to let their vigilance drop – and to have a plan in place.
Coöperatieve Rabobank Australia branch (Rabobank Australia) (A+/Aa2) launched and priced a five-year, floating-rate deal, with an upsize to A$500 million (US$385.8 million) from A$300 million. The pricing margin was 108 basis points over bank bills 7 basis points tighter than guidance.
Another busy week of deal flow produced a record-volume deal for the Australian Office of Financial Management, which printed A$11 billion (US$8.5 billion) in a November 2028 syndicated benchmark bond. Suncorp-Metway upsized its first residential mortgage-backed securities transaction since 2015 and The Export-Import Bank of Korea issued its second-ever Kauri.
On 24 February, Suncorp-Metway (Suncorp) priced its first residential mortgage-backed securities (RMBS) issue since February 2015. Apollo Series 2017-1 Trust has a six-tranche structure and was upsized from aggregate volume of A$500 million (US$358.7 million).
